The Star Online Wednesday December 2, 2009
Government planning to end sugar subsidy to promote healthy living
There is no doubt the intention of the government to encourage the people to consume less sugar is good. However does the government realise the economic consequence of cutting the sugar subsidy to industries?
Ending the sugar subsidy will raise the price of sugar. The consequence is that manufacturers and traders of food produce will pass the cost increase to the ordinary people by increasing their prices. As prices of food go up the cost of other services will also rise in tandem, thus further causing hardship to the public who is already burdened with the escalating of the cost of living. Even people who habitually don't consume sugar are also directly affected by the price increase of food and services
It is better to let the ordinary citizens to decide for themselves how much sugar that they want to cut back rather than to force it upon them by cutting the subsidy.
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