Govt to import sugar to secure 2011 stock

Trade Minister Mari Elka Pengestu said the government planned to import sugar this year to build stocks in 2011 in anticipation of a decline in national sugar production.

"The plan is aimed at meeting next year's stocking needs in the face of a fall in domestic sugar production," Mari said Friday.

She said the imports were especially required to meet the need for sugar in the first five months of 2011.

The minister said the government believed the upcoming dry spells in the country would affect national sugar production. "Production this year is predicted to be lower than last year," she said.

She said stocks now were enough to meet the need for sugar in the current fasting month and during the post-fasting Idul Fitri festivities.

Earlier, the Indonesian Refined Sugar Business Association (AGRI) insisted that the government issue a license for the importation of sugar to produce refined sugar.

M Yamin of AGRI, said refined sugar industry must be able to meet the annual demand of 600,000 tons.

Chairman of Food and Beverage Businessmen's Association (Gapmi) Adhi S Lukman expressed fear that the players would suffer a sugar shortage because national sugar production was predicted to decline this year.

Gapmi chairman Adhi S Lukman said the need for sugar for food and beverage industries this year reached five million tons, but only 4.3 million tons of the commodity available.