ID :
17842
Wed, 09/03/2008 - 08:13
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http://m.oananews.org//node/17842
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PRODUCERS WITHOLD SUGAR IN WAREHOUSES AS PRICE DROPS
Surabaya, E. Java, Sept 2 (ANTARA) - Hundreds of thousands of tons of sugar owned by domestic farmers and industry are currently piled up in warehouses in different parts of Java because of a market glut attributed to the entry of refined sugar, an industry spokesman said.
The unsold sugar stocks include carry-overs from 2007, Adig Suwandi, associate corporate secretary of state-owned sugar plantation company PT Perkebunan Nusntara XI (PTPN XI), said here Tuesday.
Farmers and sugar milling companies have been reluctant to release the sugar into the markets because the prevailing price was too low, he said.
"The sugar auction price is still below its basic price of Rp5,000 per kg. The market is really full and no one is willing to buy," he said.
Traders who were prepared to buy the sugar would invariably have difficulty marketing it. "The market is oversaturated, especially so outside Java Island. Don't be surprised to find sugar piled up in warehouses," Suwandi said.
The entry of refined sugar into the retail market was one of the key factors in the decline in the domestic sugar price since 2007.
The government had so far yet to take firm measures to solve the problem although existing regulations on refined sugar distribution were quite clear in forbidding its distribution to retailers.
Farmers who had lost patience and become disgruntled by the government's inaction had vented their anger by pulling out sugar cane plants and burning them or throwing sugar into streets, according to Suwandi. These actions had been taking place in several regions in East Java since last week, he added.
Meanwhile, the Association of Indonesian Sugar Cane Farmers (APTRI) had threatened to stage a sit-in at the Trade Ministry if the government failed to take action soon to help farmers solve the problem.
"The sugar cane plant uprrooting and burning actions are continuing. We are still waiting for government action," APTRI PTPN XI chairman Arum Sabil said.
Suwandi called on the government to withdraw refined sugar from the free market and impose sanctions on its producers as well as distributors.
"The farmers' disappointment can have far-reaching consequences, especially for the government's efforts to achieve consumer-sugar self-sufficiency by 2009," Suwandi said.
The unsold sugar stocks include carry-overs from 2007, Adig Suwandi, associate corporate secretary of state-owned sugar plantation company PT Perkebunan Nusntara XI (PTPN XI), said here Tuesday.
Farmers and sugar milling companies have been reluctant to release the sugar into the markets because the prevailing price was too low, he said.
"The sugar auction price is still below its basic price of Rp5,000 per kg. The market is really full and no one is willing to buy," he said.
Traders who were prepared to buy the sugar would invariably have difficulty marketing it. "The market is oversaturated, especially so outside Java Island. Don't be surprised to find sugar piled up in warehouses," Suwandi said.
The entry of refined sugar into the retail market was one of the key factors in the decline in the domestic sugar price since 2007.
The government had so far yet to take firm measures to solve the problem although existing regulations on refined sugar distribution were quite clear in forbidding its distribution to retailers.
Farmers who had lost patience and become disgruntled by the government's inaction had vented their anger by pulling out sugar cane plants and burning them or throwing sugar into streets, according to Suwandi. These actions had been taking place in several regions in East Java since last week, he added.
Meanwhile, the Association of Indonesian Sugar Cane Farmers (APTRI) had threatened to stage a sit-in at the Trade Ministry if the government failed to take action soon to help farmers solve the problem.
"The sugar cane plant uprrooting and burning actions are continuing. We are still waiting for government action," APTRI PTPN XI chairman Arum Sabil said.
Suwandi called on the government to withdraw refined sugar from the free market and impose sanctions on its producers as well as distributors.
"The farmers' disappointment can have far-reaching consequences, especially for the government's efforts to achieve consumer-sugar self-sufficiency by 2009," Suwandi said.
