Growth of rafinated sugar
industry had the potential to undermine the sugar selft resiliency program
proclaimed by the Government, because it tend to case aside local-sugar based
sugarmills. The potential of penetration of rafinated sugar heigntened in line
with the widening supply-and-demand gap. In consequence of this penetration,
sugar products made of famers’ sugarcane would lose competition as their prices
were higher than rafinated sugar. The further effect was that sugar mills would
downsize their production and might even go bankrupt.
The Association of Indonesian Sugar and Flour Producers
[Apegti] rated that the Government was unale to troubleshoot problems in the
national sugar sector as indicated by penetration of rafinated sugar to the consumer’s
market. Therefore the association urged the Government to announce the audit
outcome of the case. Chairman of Apegti, Natsir Mansyur stated in Jakarta on
Monday [23/12] that penetration of rafinated sugar to the consumers’ market was
a disaster to national sugar industry.
Natsir rated that all turmoil happening in national sugar
management was because the Government themselves were breaking the law and
policies such as the policy of the Ministry of Agriculture, Ministry of Trade
and Indonesian Sugar Council [DGI]. Natsir stressed that many cases sugar were
ignored by the Government, so he demanded the Government to announce the audit
outcome at once.
Apegti
demanded that the Ministry of Trade and the Ministry of Industry be accountable
for the penetration of rafinated sugar for the industry to the consumers’
market, causing farmers’ sugar to be unsold. Natsir stressed that the root of
problem was when the Ministry of Industry acted as recommendatory for import of
raw sugar for rafuinated sugar.
According
to Natsir, leaking of rafinated sugar has been going on for the past 3 years,
but he regretted the Minister of Industry and Minister of Trade who tend to be
permissive to rafinated sugar year after year, without giving any sanction to
rafinated sugar industry whose production leaked out to the open market. What
made it worse, Natsir said each year import of raw sugar was approved by
Commission VI of House and also by the Coordinating Minister of Economy which
turned PTPN sugar products into victims.
Meanwhile
the Ministry of Trade claimed that penetrtation level of rafinated sugar by 8
imported companies was 0% - 29%, meaning a downturn of 5% - 100% against 2011.
The Director General of Domestic Trading of the Ministry of Trade, Srie
Agustina stated that the figures were more than just assumption but they were
based on auditing process officially exercised. Audit was exercised on 8
existing importers 3 new importers, 60 F&B industry, 110 markets in 15
provinces and regencies/cities.
According
to Agustine, the Minister of Trade was not sitting on his laurels in facing the
case of rafinated sugar penetration, but give punishment to import if there was
still violation. To protect farmers, the Minister of Trade had stipulated
Farmers Buying Price [HPP]. The prices were not just set from farmer’s
viewpoint but also considering price stabilization at consumer’s level.
About the plan to import 300,000 tons of raw sugar by BULOG, Agustina said, it was still a proposition by BULOG to secure reserves of crystal sugar which in July 2014 was predicted to be minus 290,000 tons. She believed that the minus state happened was on account of increased F&B industry from 5% to 7% which means increased need.
Business News - December 30, 2013
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