Danantara Indonesia to spend Rp1.5 trillion to absorb farmers’ unsold sugar
Indonesia’s Danantara Indonesia will invest Rp1.5 trillion (US\$92 million) to buy unsold farmers’ sugar from factory warehouses, APTRI said. Prices have fallen below the government’s Rp14,500/kg reference, with traders offering as low as Rp14,200. Around 5,000 tonnes remain unsold, delaying payments to farmers.
Situbondo, East Java (ANTARA): State investment agency Danantara Indonesia has pledged Rp1.5 trillion (US$92 million) to purchase farmers’ sugar currently lying unsold in factory warehouses, the Association of Indonesian Sugarcane Growers (APTRI) said, reports Antara News.
Herman Fauzi, secretary of the APTRI branch in Assembagoes sub-district, Situbondo, said the commitment was reached after talks between the association and the Coordinating Ministry for Economic Affairs.
“Last week, APTRI leaders met with relevant ministries and secured an agreement for Danantara to channel funds through PT Sinergi Gula Nusantara to buy farmers’ sugar,” Fauzi said on Saturday.
He noted that thousands of tonnes of sugar have been sitting in the Assembagoes sugar factory warehouse because traders are offering prices below the government’s reference price of Rp14,500 per kilogram.
“For the past four weeks, traders have only been offering Rp14,350 or even Rp14,200 per kilogram. We insist the minimum price must be Rp14,500,” he said.
Fauzi suspects the falling price is linked to the entry of refined sugar into retail markets, despite it being meant for industrial use. “Refined sugar is cheaper and not as sweet as regular sugar,” he said.
Mulyono, general manager of the state-owned Assembagoes sugar factory under PT Sinergi Gula Nusantara, confirmed that 5,000 tonnes of sugar have gone unsold in the past month.
“As a result, we haven’t been able to pay the farmers whose cane we process,” he said.
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Source : Chinimandi
