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F&B sellers compromise taste amid soaring sugar prices
A decline in sales has been one of the impacts of the rising average price of sugar in Jakarta since January. Sugar production nationwide is estimated to have declined to around 2 million tons this year from 2.2 million tons in 2019, according to an outlook released in February by the Indonesian Sugar Association (AGI).
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Fitri Ramandani, a 17-year-old Thai tea vendor, serves customers in Kayu Putih district in East Jakarta on Friday.
(Jakarta Post/Dzulfiqar Fathur Rahman)
F
itri Ramandani, a 17-year-old assistant to a Thai beverage seller, was only able to find a pack of sugar from a small warung located close to her cart in Kayu Putih district in East Jakarta. She had gone to several other small stores in the neighborhood, only to find empty shelves.
She used to buy a kilogram of sugar for Rp 14,000 (98 US cents). As nearby warungs and convenience stores increased their prices by around 14 percent to Rp 17,000 per kilogram, she had to raise her budget for sugar.
But due to financial constraints, she could recently buy only 2 kg of sugar to last her cart two days, from the usual 4 kg.
"It’s difficult to keep the business going," Fitri said on Friday. "It’s currently the rainy season, so we are seeing fewer customers. The rising prices make it harder."
Some of Fitri's customers have been complaining about the taste of their chocolate-flavored Thai tea drinks, saying they “weren’t as sweet”. And she now sometimes closes her shop at 9 p.m., earlier than her usual closing hour at 11 p.m., to save on sugar.
This decline in sales has been one of the impacts of the rising average price of sugar in Jakarta since January. Sugar production nationwide is estimated to have declined to around 2 million tons this year from 2.2 million tons in 2019, according to an outlook released in February by the Indonesian Sugar Association (AGI).
The country’s supply of sugar is projected to reach 1 million tons this year, while consumption is estimated to be 3.1 million tons.
