The sugar refining industry previously said it was in discussions with the government to float the ceiling price of retail sugar, which has seen a net increase of only 1 sen since 2013.

Sugar ceiling prices are currently set at RM2.85 per kg for coarse sugar and RM2.95 per kg for refined sugar.

During a press conference here, MSM Malaysia Holdings Bhd group CEO Syed Feizal Syed Mohammad said the government understood that the industry could no longer afford to maintain such prices.

“Inflationary pressures on raw sugar, shipping and gas have left sugar producers with negative margins when producing coarse sugar… the government understands that the industry cannot prolong this issue, and it requires a solution.

“We believe that the government will address this issue soon enough,” he told reporters after launching a new product here.

He said the industry had been engaging the government on the issue for nearly 30 months, during which time it had held more than 50 meetings.

“It has been hard work… God willing, we are getting there,” he said.

MSM is in a duopoly with Central Sugars Refinery Sdn Bhd in the local sugar refining business, with MSM enjoying a 60% market share to CSR’s 40%.

Last month, Mydin managing director Ameer Ali Mydin called on the government to either float or increase the ceiling price of retail sugar from RM2.85 to RM3.80 because of the international rise in prices.