Jakarta: The retail prices of sugar in Indonesia have hit four years high amid an increase in consumption and shortage of supply. The sugar mills in the country have appealed consumers to reduce the consumption to address the situation.
According to the news report published in BloombergQuint, Yadi Yusriyadi, senior advisor, Indonesian Sugar Association said, “The buyers are facing the stiff challenge of importing sugar as the countries have put movement restrictions to stop the spread of coronavirus pandemic”.
The country usually imports sugar from Thailand but facing problem as the sugar output in that country has fallen due to drought conditions.
“We fear of rising deficit if fail to control consumption. We have no option but to increase import,” said Yadi. The government has asked the domestic sugar mills to increase sugar production.
In a recent release ISMA had stated that, with Indonesia opening up its market for Indian sugar, including giving the preferential lower import duty to India (along with Thailand and Australia), Indian sugar will be in very high demand in Indonesia.
ISMA said, “About 80-85% of sugar imports by Indonesia are from Thailand. There has been a massive drop in sugar production by 6.5 million tons in Thailand in current season over last year. That is expected to further drop by another 1 million ton next year. Therefore, a major portion of the unmet import demand of Indonesia will come to India, which can see a spurt from June-July and may continue for another year or so. Already, sugar is getting exported to Indonesia over the last few weeks. Fall in exports during the lockdown will be therefore partially or largely get compensated by the extra sales/exports to Indonesia.”
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