Indonesia: Farmgate price hike insufficient to boost sugar output

Jakarta: The increase in the farmgate price for sugar by Rp 1,000 (6 US cents) per kg by the National Food Agency to halt downtrend in prices and increase production and attain self sufficiency won’t make much difference, say, industry experts, reports The Jakarta Post. The red tape is preventing Indonesia from achieving the target of self-sufficiency in sugar production, they said.

The farmgate price for white sugar has been increased by the NFA from Rp 11,500 per kg to 12,500 per kg to avert the lowering of plantation prices for white sugar in the country which is the world’s largest importer of raw sugar.

Soemitro Samadikoen, chairman of the Indonesia Sugarcane Farmers Association (APTRI) said that the drop in prices was because a sugar factory was locking in orders from farmers in bulk at very low prices long before harvest.


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