Indonesia: Purchase price of white crystal sugar is Rp. 12,500 per kg at farmer level

Published Jul 2, 2023

Tridge summary

The National Food Agency in Indonesia has issued a circular letter stating that the purchase price of white crystal sugar at the farmer level should be at least IDR 12,500 per kilogram. This is aimed at protecting farmers and ensuring affordable prices for consumers. The price of sugar for consumers has been relatively stable for decades, and the increase should not be too burdensome as sugar consumption in society is low.

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Original content

Reporter: Ratih Waseso | Editor: Yudho Winarto KONTAN.CO.ID - JAKARTA. Agricultural observer from the Indonesian Political Economy Association (AEPI) Khudori said the publication of the National Food Agency Circular Letter (SE) Number 159/TS.02.02/K/6/2023 concerning Purchase Prices of White Crystal Sugar (GKP) at the Farmer Level serves as a guide or reference for sugar industry players. This is mainly to ensure that farmers are protected and do not suffer losses. Apart from that, to ensure that sales at the consumer level are maintained, the price is also affordable for consumers. "Why did the price go up? It's because the production cost structure has gone up. The prices for sugar cane production inputs (which are then processed into sugar) have gone up. Are land rents, labor costs, fertilizers, seeds and others. It's not fair because farming costs have gone up but prices continue to be suppressed," Khudori told Kontan.co.id, Sunday (2/7). He reminded that since 2016 the price ...

Source: Kontan