JAKARTA (Reuters) – Indonesia plans to import around 200,000 metric tons of raw sugar to top up government’s food reserve as white sugar prices have climbed in the domestic market ahead of Ramadan, the National Food Agency said on Thursday.
The government has estimated domestic white sugar output at 2.6 million tons this year and demand at 2.84 million tons. Indonesia had white sugar stocks of 842,000 tons in early February.
“We want to raise the government stock level. It is not because of production shortage,” said National Food Agency chief Arief Prasetyo Adi said in a statement.
The statistics bureau reported white sugar prices in the first week of February averaged at 18,365 rupiah ($1.12) a kilogram, about 5% above the government’s nominated ceiling price.
The government can use its food reserve to add to market supply and bring prices down.
Arief said the sugar reserves could meet up to five months demand, and the imports are expected to arrive gradually this year. He said the additional imports will be assigned to state-owned food companies.
The government has an import quota of 3.4 million tons of raw sugar for industrial use this year
Indonesia has set a target to reach food self-reliance in the next four years.
($1 = 16,360 rupiah)
(Reporting by Bernadette Christina; Editing by John Mair)
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