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| Indonesian sugar cane farmers |
The government plans to review the Farmer Standard Price of white crystal sugar at year 2014. Commerce Minister, Muhammad Lutfi said, Farmer Standard Price of white crystal sugar will be set to IDR 8,500 per kilogram.
"This is an attempt to correct the impediments to the sale of the sugar," said Lutfi at the Ministry of Commerce, Friday, August 8, 2014.
He added that as long as there are concerns of farmers about the drop in sugar prices due to leakage of the sugar industry. Moreover, refined sugar import quota in 2014 is still alive and on his way to Indonesia. "Refined sugar import quota this year was more than 2.8 million tons," he said.
"This is an attempt to correct the impediments to the sale of the sugar," said Lutfi at the Ministry of Commerce, Friday, August 8, 2014.
He added that as long as there are concerns of farmers about the drop in sugar prices due to leakage of the sugar industry. Moreover, refined sugar import quota in 2014 is still alive and on his way to Indonesia. "Refined sugar import quota this year was more than 2.8 million tons," he said.
Not only revise Farmer Standard Price of white crystal sugar, banned refined sugar into consumer markets has actually been done by the government. Since issuing import permits for refined sugar a week before Eid, Lutfi has warned that the sugar should not be channeled through distributors. "Anyway, refined sugar imports at least 502 thousand tons were to be directly sent to the industry," he said.
In this way, the existing stock of refined sugar amounted to 400 thousand tons from distributors will practically depleted. Then, the farmer can channel back sugar from crops that will culminate at the end of August. "I predicted that way, without the intervention, market mechanism can make its own adjustment," he said.
Policy of the Ministry of Commerce about the circulation of refined sugar to the industry will be regulated in the Decree of the Minister of Trade issued today. The letter will also set the selling price of sugar from the distributor, which should not be lower than IDR 8,500 per kilogram.
Previously, sugar cane farmers from Kudus and Pati, Central Java file a lawsuit to the Supreme Court against government about Farmer Standard Price in 2014, they sue the government to make Farmer Standard Price on IDR 8,250 per kilogram. They demanded the government to revise the regulation.
Sugar Cane farmers Coordinator, M. Nur Khabsyin said, contrary to the determination of the Indonesian Sugar Council Beleid. Moreover, Sugar Cane farmers association has proposed Farmer Standard Price of white sugar higher than the determination of the government. "Sugar Cane farmers association plenary meeting on March 11, 2014 vote on the amount of Farmer Standard Price of white sugar at IDR 9,500 per kilogram," Nur said in an email, Wednesday, July 9, 2014.
In this way, the existing stock of refined sugar amounted to 400 thousand tons from distributors will practically depleted. Then, the farmer can channel back sugar from crops that will culminate at the end of August. "I predicted that way, without the intervention, market mechanism can make its own adjustment," he said.
Policy of the Ministry of Commerce about the circulation of refined sugar to the industry will be regulated in the Decree of the Minister of Trade issued today. The letter will also set the selling price of sugar from the distributor, which should not be lower than IDR 8,500 per kilogram.
Previously, sugar cane farmers from Kudus and Pati, Central Java file a lawsuit to the Supreme Court against government about Farmer Standard Price in 2014, they sue the government to make Farmer Standard Price on IDR 8,250 per kilogram. They demanded the government to revise the regulation.
Sugar Cane farmers Coordinator, M. Nur Khabsyin said, contrary to the determination of the Indonesian Sugar Council Beleid. Moreover, Sugar Cane farmers association has proposed Farmer Standard Price of white sugar higher than the determination of the government. "Sugar Cane farmers association plenary meeting on March 11, 2014 vote on the amount of Farmer Standard Price of white sugar at IDR 9,500 per kilogram," Nur said in an email, Wednesday, July 9, 2014.
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