Sugar production down 25 percent from target
Nani Afrida, The Jakarta Post, Jakarta | Wed, 10/20/2010 10:55 AM
The government may have to import more white sugar this year, as domestic sugar production has dropped 25 percent recently due to extreme weather.
The target for domestic production of white sugar was set at 2.5 million tons for 2010, but was revised to 2.3 million tons in September.
However, deputy to state-owned enterprises minister for primary industry Megananda Daryono said Monday that production would likely be around 1.73 million tons by the end of this year.
“The weather did not support the cultivation of good quality sugarcane. As a result, we have to import sugar from overseas to meet national demand,” he said, without revealing the amount to be imported.
In early 2010 Indonesia imported 500,000 tons of sugar to fulfill domestic demand in the first five months of this year. The government imported another 400,000 tons in September to meet next year’s demand ahead of the milling season in May. The amount of imported sugar was based on the assumption that domestic production would be 2.3 million tons this year.
In 2009, the government imported 250,000 tons of white sugar.
Many countries are also experiencing sugar production shortages due to unpredictable weather. As a result, sugar prices have jumped on the international market, to US$605.8 per ton in October from $500 per ton in September.
“Several sugar producers are also facing problems due to extreme weather. Pakistan, for instance, has had to import 500,000 tons of raw sugar to meet its demand,” state plantation company PTPN XI corporate secretary Adig Suwandi said.
“Pakistan’s sugar production declined to 3.8 million tons and its demand was 4.3 million tons.” A recent World Sugar Report showed the world’s sugar production was short of demand by 6.45 million tons. World sugar production was 153.1 million tons and demand was at 159.6 million tons, according to the report.
Demand for both white and raw sugar in Indonesia is expected to increase to 5.7 million tons in 2014, from 5 million tons this year. The government plans to increase domestic output to meet consumption and create a balanced market by 2014.
