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Firms delay sugar imports amid soaring international prices
Domestic sugar prices have remained high in recent months as importers hold back from procuring the commodity due to high international prices, the National Food Agency (Bapanas) said on Monday.
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Secured supply: A worker carries a sack of sugar in this undated photo. (Tempo/-)
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omestic sugar prices have remained high over the past few months, as importers hold back from procuring the commodity due to soaring international prices, the National Food Agency (Bapanas) said on Monday.
Bapanas head Arief Prasetyo Adi said importers had realized only 26 percent of the 1 million tonnes approved by the government to import as firms opted to delay shipments.
Arief urged firms to not restrict sugar imports on purpose due to the present high global market pricing for sugar and the ongoing weakening of the rupiah versus the dollar, Bisnis reported.
“Private companies are only willing to import when it’s profitable. If the prices abroad are higher, they are reluctant to import. This isn’t the right way. Importing isn’t just about the price, but also stock fulfillment,” Arief said as quoted from Kontan.
Read also: Indonesia to import 500,000 tonnes of corn as supply deficit looms
Bapanas said importers should continue to perform their duties and, as a guarantee, the agency would ensure that importers incurred no loss.
Indonesia is reliant on imported sugar to meet most of its domestic demand with local production only accounting for less than half.
