Monday, January 4, 2010

Effect of sugar price increase

Sugar price is now RM1.65. What will be next?

Chinese New Year is coming, people will make a lot of cookies for this grand celebration, especially Chinese. Although it is said on the newspaper that the food price will not increase currently, it does not mean forever. Soon, the hawkers will feel the effects.

Let's see from the normal food courts. Probably, they won't increase the food price because they seldom use sugar, they use salt. XP But, there are still some of them who uses sugar, especially the drinks. Sweet drinks: ice blended chocolate, milk shake, ais kacang... Can drinks: coca-cola, pepsi, sprite...

Just an example, Coca-Cola. Everyone knows this kind of drinks contain a lot of sugars. It is actually very sweet, but the sweet taste is not easy to sensed by our tongue due to the carbohydrate. Alright, now the sugar price increases. The modal of producing these increases, and the selling prices increases as well. The effect is not immediate because of the stock-piling effect. However, it is not that slow too. I predict, the soft can drink might increase from RM1.50 to between RM1.60-RM1.80 within two months.

Another effect, the Chinese New Year food market. Cookies, biscuits, cakes, candies, are all affected (I mean the price). It's just one more month. However, I believe that Chinese will never care much on the prices during Chinese New Year. Everyone will never stop celebrating because of the price.

No matter what is going to happen next, I wish everyone Happy New Year 2010.

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