Monday, August 03, 2009
It is time the government float the price of sugar. Sugar and other commodities cannot be subsidized continuously because it will promote wastage. Too much sugar in your diet will mean greater chance of being obese. Being obese will lead to a lot of health problem. When people have health problem, they will mostly end up at government hospital. So, the government or more precisely, the tax payer is paying for subsidize sugar and health care.
Let sugar price adjust to international price. Higher price will cut down the consumption of sugar, less chance of obesity, less money needed for health care.
In my opinion, price control is a bad thing. It distorts supply and demand, and when the displacement gets too wide, a sudden adjustment will bring suffering to everyone because people need time to adapt to a new environment.
Anyhow, let us just hope that sugar will not break above 20.00.