REPUBLIKA.CO.ID, JAKARTA -- The State Logistic Agency (Bulog) is ready to absorb sugar from farmers' plantation, which has met the national standard (SNI), at Rp9,700 per kilogram, Bulog's President Director Budi Waseso said.
"Bulog is ready. Next week, we will start to absorb it at Rp9,700 per kilogram," Waseso told Antara here on Thursday.
According to Waseso, the agency would absorb 600 tons of sugar from farmers. Meanwhile, Chairman of the Indonesia Sugar Cane Farmers Association (APTRI) advisory board Arum Salim has expressed hope for Bulog to buy the commodity immediately.
"I hope the promise to absorb sugar next week could be materialized, because farmers are already in a critical situation. It would be too late if Bulog absorbs the sugar after middlemen have already bought them," he noted, adding that middlemen traders would buy the commodity below Rp9,700 per kilogram.
Previously, Salim stated that domestic sugar market was distracted by import of raw sugar processed into white sugar for consumption.
"The market did not absorb (local sugar). It was because white sugar distributed in local market is processed from imported raw sugar. I hope that the production of white sugar from imported raw sugar could be stopped as it would disturb local supply and demand," he remarked.
Sugarcane farmers have met Trade Minister Enggartiasto Lukita and called on Bulog to absorb sugar at Rp9,700 to Rp10.500 per kilogram.
The State Enterprises Ministry has tasked Bulog to buy farmers' sugar, which has met the national standard (SNI), next week.