REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Sugarcane Farmers Association (APTRI) has urged the government to import sugar in line with the demand and stop its distribution during the local sugar milling period.

"Currently, local sugar is less marketable due to the influx of imported sugar for consumption into the market as well as illegal supply from the refined sugar market," the association noted in a statement here, Monday.

The local farmers' sugar price in 2017 had dropped to Rp9 thousand-Rp9,500 per kilogram (kg), from Rp11 thousand-Rp11,500 per kg in 2016.

With a total production of one million tons, financial losses due to the declining price had reached Rp1 trillion.

The demand for sugar was recorded at 2.7 million tons in 2016, while production has reached 2.3 million tons per year.

The imports of sugar had reached 1.2 million tons in 2016 and had begun to enter the market in 2017. As a result, the market could no longer absorb the locally produced sugar.

The APTRI has also called on the government to buy sugar from farmers at Rp11 thousand per kg and reject Bulog's buying price at Rp9,700 per kg, as it will not be able to cover the production cost and will be far below its ceiling price of Rp12,500 per kg.

According to the association, the cost of sugar production currently reaches Rp10,600 per kg due to the lower yield, productivity, and higher planting costs.

"We want an increase in the cost of sugar to Rp11 thousand per kg," it said.

The APTRI has also called to increase the retail ceiling price to Rp14 thousand per kg, which will benefit the farmers as well as traders and not harm the consumers.

"The imposition of a ceiling price during the harvesting/milling period would be unfair, as the farmers will not be able to enjoy (the benefits of) the good price," it pointed out.

With regard to offering loans to sugarcane farmers, the APTRI has called on the government to simplify its requirements, with a maximum allocation of five hectares to each farmer.

Fertilizer subsidy should be returned to the earlier regulation, which is simpler.

Farmers have supported the government's plan to establish a new sugar plant to produce white sugar as long as it is not used to mill imported raw sugar. Establishment of the new factory should also be followed by increasing the land for sugarcane cultivation.

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