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Indonesian F&B industry mulls price hikes as sugar costs soar
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The price of refined sugar on the world market hovered at about 0.53 US cents per kilogram on Monday, up more than 26 percent from the same period last year, according to Markets Insider data. (Unsplash/Myriam Zilles)
T
he domestic food and beverage industry is considering raising the prices of a number of products this year to make up for the high price of refined sugar, an industry association has said.
The Indonesian Food and Beverage Producers Association (Gapmmi) said on Monday that the hike would affect products such as syrups, sodas and cookies.
The price of refined sugar on the world market hovered at about 0.53 US cents per kilogram on Monday, up more than 26 percent from the same period last year, according to Markets Insider data.
“The sugar price has jumped up some 30 percent [year-on-year]. […] Now imported sugar is costlier than local sugar,” Gapmmi chairman Adhi S. Lukman said on Monday, as quoted by Kompas.com.
“My prediction is that at the end of this year or at the start of next year, many firms will review their pricing,” he said separately.
Read also: Govt delays implementation of sugary drinks excise despite public health concerns
Adhi said Indonesian processed food manufacturers relied completely on imported sugar, as local white crystal sugar, which is commonly sold for household consumption, could not be used in industrial production.
