Blood Sugar

Blood sugar, also known as glucose is present in our bloodstream. Glucose is our body's primary source of energy, produced by digesting the sugar and starch in carbohydrates. The enzymes and bile in the digestive system breaks down the carbohydrates in these foods into glucose. The small intestine absorbs glucose into the bloodstream. In the blood stream, glucose combines with insulin, a hormone excreted by the pancreas, to spread the energy to perform all physical and mental activities. To find out the normal, high and low glucose levels, let's take a look at the chart for blood sugar levels. The normal range for the blood sugar level maintained by the body for its smooth functioning is at 70 to 150 mg/dL. It is normal for the sugar level to fluctuate throughout the day, glucose levels are the lowest in the mornings, and mostly tend to rise for a couple of hours after meals, depending on the volume of carbohydrates consumed. Our body has an excellent mechanism to regulate normal blood sugar levels, in case of a fall. Extra glucose is stored in the liver as glycogen, easily reabsorbing itself in the blood stream, when the sugar levels drop. Example Case Kuala Lumpur baker Serene Chin is having trouble keeping her egg tarts sweet. A sugar shortage prompted her local Tesco Plc hypermarket to impose a 2 kilogram- percustomer ration, foThis current shortage is really tiresome,” said Chin, who normally buys 48 kilograms at a time for her John King’s bakery. “Sugar is necessary for the people.” Supplies of the sweetener are scarce in Malaysia because of a global shortage and a decades-old government price cap that encourages people to smuggle sugar across the border into Thailand, where it fetches double the price. Almost every vehicle stopped at the border is carrying controlled-price items like sugar and cooking oil, said Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaakob. Customs has begun 35 investigations, more than twice the number last year. “If you put a ceiling on local prices, when the difference between global and local prices widens, it makes no sense to retailers to sell sugar domestically,” said Suhaimi Ilias, chief economist at Maybank Investment Bank Bhd. in Kuala Lumpur. The government needs “more flexible price controls.” Raw sugar futures have doubled this year to a 28-year high, after India, the biggest consumer, had its driest June in 83 years, reducing domestic supplies, and crops in parts of Brazil, the largest grower, were wrecked by rainfall four times more than normal. Malaysia spent 720 million ringgit ($204 million) on sugar subsidies this year, Ismail said. World Shortage World demand for sugar will exceed supply by as much as 5 million tons over the next 12 months, the International Sugar Organization estimates. In Malaysia, the price is set at 1.45 ringgit per kilo, or 1.55 ringgit in the eastern states of Sabah and Sarawak. In Thailand, the world’s second-biggest exporter, it can fetch as much as 2.90 ringgit, Ismail said. Malaysia introduced price controls on essential items in 1974 to ensure food security and cushion volatility in the commodities markets. To prevent a run on sugar in the shops

during the monthlong peak demand period of Ramadan, which started Aug. 22, retailers are rationing supplies. Enforcement agencies have stepped up border checks and wholesalers who are caught hoarding sugar will be stripped of their licenses and blacklisted, Ismail said. About 10 tons of sugar have been confiscated from people carrying the sweetener over the Thai border this year, the Customs Department said. Under the 1967 Customs Act, sugar smugglers face up to three years in jail or a fine of at least 100,000 ringgit, or both. Ramadan Fast In an effort to meet higher demand before Ramadan, when Muslims break their daylong fast with large meals at dinner, sugar refiners including Malayan Sugar Manufacturing Co., a unit of Robert Kuok’S PPB Group, and Central Sugar Refinery Sdn. Bhd. increased production 20 percent in August to 120,000 tons a month, Ismail said. The state compensates refiners for selling a set quota of sugar below cost, based on their 2008 sales. No more than 10 percent of locally made sugar is exported, said domestic trade ministry Secretary-General Mohd Zain Mohd Dom. Manufacturers are slowing production as the subsidy for the year is running out, the Star newspaper said, citing Mohd Zain. “If panic buying continues, no matter how much we load, sugar will run out in the shops,” said Ismail. Ministry investigations show the black market price for sugar ranges between 1.50 ringgit and 1.70 ringgit, he said. The government has offered a reward of up to 10,000 ringgit to anyone with information on hoarders or smugglers.

Rising sugar prices Shortage of sugar supplies and escalation of price causing a great impact to consumers particularly those from the lower income group and to Malaysian market generally. Moreover, each year the issue over shortage and increase of price of daily essential items like sugar and flour is likely bound to occur especially in the upcoming of the festive season creating a drastic demand market from consumers. Possibilities of this shortage and escalation of prices sourced by the network of distribution which is being monopolized under the certain groups, whereby an arrangement has been made towards the sugar price in local market. This is could be due to the work of a ‘cartel’ that controls the country’s sugar industry.

Shortage of supplies Traditionally, the demand for sugar would surge prior to festive season and during this time, the SMEs and petty traders need a lot of sugar to meet their production. As the production of subsidized sugar has a certain quota, definitely an imbalance in the sugar supply and its shortage is bound to happen. For bulk orders, the SMEs and petty

traders would purchase their sugar supply from the wholesalers or sugar mills but the price they have to pay is higher than that for subsidized sugar. Furthermore, there is also a possibility that the sugar suppliers and wholesaler are selling the subsidized sugar directly to the industries at a price, which is slightly lower than the industrial price, for a quick profit. Demand And Supply The shortage of sugar supply is rearing its ugly head in the country again, similar to what had happened in the past particularly during festive occasion where fasting month of Ramadhan being just around the corner and Hari Raya occasion.

During the festive season, the demand curve of sugar shift to the right. The above figure shows that the demand curve shifts from D1 to D2. . At a price of RM1.50 per pack, the quantity demanded raise from 100,000 tons per months to 120,000 per months, as reflected by the shift from point A to point B.

Excess demand during festive season

The above figure shows shortage of sugar. Because the market price of 1.50 is below the equilibrium price, the quantity demanded exceeds the quantity supplied with too many buyers chasing too few goods; suppliers can take advantage of the shortage by raising the price.

Recommendations To enhance the improvement of the domestic market life cycle of sugar industry cooperation between the government, consumers and producers would leave a great impact of result at the end. Thus, consideration has to be made over recommendations in order to facilitate the solution over the crisis: 1. Allocation of certain dedicated fund towards venturing new source of growth with increase of private sector participation would attract more investors to invest into the agricultural sector trough the expansion of growing land and mechanization. 2. Participation of Adoption of Good Agriculture Practices and better farming management also contribute to the improvement of efficiency and optimization of productivity level. Hence, implementation of the long-run development strategy should be set up as soon as possible; these include the agricultural research and training. 3. Emphasize the health awareness campaign of food insecurity over daily sugar intakes which could lead to an obesity and diabetes illness among consumers. 4. Studying the feasibility of government productions quota and the creation of stockpile can be seen as a measure to deal with the shortage of goods.

5. Optimization of security and observation by setting up an authorities or supervisory body (policy and regulatory rules) such as the Federation of Consumer Associations Malaysia (FOMCA) and the National Price Council (MHN) to come over with price determination and future forecast of consumers’ demand.