Indonesia is planning to import around 200,000 metric tons of raw sugar to boost its food reserves as the price of white sugar has risen in domestic markets ahead of Ramadan, according to the National Food Agency on Thursday, reported Reuters.
The government projects that domestic production of white sugar will reach 2.6 million tons this year, while demand is expected to be 2.84 million tons. Indonesia had white sugar stocks of 842,000 tons in early February.
“We aim to increase the government’s stock levels, but it’s not due to a production shortage,” stated Arief Prasetyo Adi, head of the National Food Agency.
Data from the statistics bureau shows that in the first week of February, the average price of white sugar was 18,365 rupiah ($1.12) per kilogram, which is around 5% higher than the government-set price ceiling.
The government plans to use its food reserves to help increase market supply and lower sugar prices.
Arief said the sugar reserves could meet up to five months demand, and the imports are expected to arrive gradually this year. These additional imports will be allocated to state-owned food enterprises.
This year, Indonesia has set an import quota of 3.4 million tons of raw sugar for industrial use.
Looking ahead, the Indonesian government aims to achieve food self-sufficiency within the next four years.
