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Trade Ministry issues permits for raw sugar imports in Q2
The Trade Ministry has approved permits for sugar refiners to import 945,643 tons of raw sugar for the second quarter of this year
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The Trade Ministry has approved permits for sugar refiners to import 945,643 tons of raw sugar for the second quarter of this year.
The figure is much higher than the 672,000 tons allocated for the first quarter ending in March.
The ministry's import director, Thamrin Latuconsina, said on Wednesday that the higher amount would allow refiners to meet stronger demand for refined sugar from the food and beverage industry, which boosts production ahead of Ramadhan and Idul Fitri, which will fall consecutively fall in June and July.
'In deciding the quota, we considered the need for raw sugar in the food and beverage industry during the festivities,' he said in a text message.
Thamrin further said although the permitted imports were higher than the first quarter, the fourth quarter quota was only 60 percent of the 1.58 million tons recommended by the Industry Ministry.
There is concern that a high raw sugar import quota could drive excessive refined sugar production, which could lead to leakage in the end-consumer market.
The spill of the refined sugar usually pushes down the price of white sugar made from sugarcane planted by local farmers. (++++)
