Mari rules out more sugar licenses

The Jakarta Post ,  Jakarta   |  Thu, 04/20/2006 10:34 AM  |  Business

The Jakarta Post, Jakarta

A government minister announced Wednesday that no more new licenses would be issued for sugar imports this year.

""Considering local sugar production estimates, and the fact that there are still sugar import licenses that have not been acted upon, we have decided not to issue any more new license this year,"" Trade Minister Mari Elka Pangestu told the press.

During a media conference to announce a new floor price for sugar, Marie said local production this year was expected to come in at 2.48 million tons, while local consumption would amount to 2.27 million tons.

The Trade Ministry has issued licenses for the importation of some 300,000 tons of sugar this year, of which 190,000 tons have actually been imported.

Of the 110,000 tons not yet imported, registered importers are authorized to import some 55,000 tons, with the rest being shared equally between the State Logistics Agency (BULOG) and state trading firm PPI.

Mari also said that the government had raised the sugar floor price by 26 percent from Rp 3,800 to Rp 4,800 per kilogram.

The floor price is set to protect sugar farmers from unscrupulous buyers able to dictate prices at the local level.

Despite the new floor price, Mari said she hoped there would be no price increases to the consumer. ""Notwithstanding the new floor price, the sugar price in Java should stay at Rp 6,000 per kilogram, while outside Java it will be Rp 6,200 per kilogram. -- Benget Simbolon Tnb

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