National Food Agency Ensures Sugar Stock For Ramadan And Eid Al-Fitr Are Safe

Head of the National Food Agency (NFA) Arief Prasetyo Adi (right) conducted a press statement at the Jakarta Presidential Palace Complex, Friday (24/3/2023). (DOC. ANTARA)

The National Food Agency (NFA) ensures the availability of consumption sugar on the National Religious Holidays (HBKN) of Ramadan and Eid Al-Fitr.

Head of NFA Arief Prasetyo Adi said the availability of sugar by optimizing domestic sugar stocks and accelerating sugar procurement by Food SOEs.

Arief said, sugar stocks to meet the needs of Ramadan and Eid al-Fitr this year are in a safe position. Fulfillment of sugar is also still maximizing domestic crops, this confirms that optimizing domestic sugar stocks remains a priority.

Based on the Food Balance Prognosis compiled by NFA, the initial national sugar stock in January 2023 is 1.1 million tons, the national sugar demand per month is recorded at 283 thousand tons.

"Based on the calculation of national sugar needs and to secure needs up to Eid al-Fitr, we have prepared additional sugar supplies. Considering that during holidays there is often a surge in demand and consumption, while the sugar milling season will only start around May," he explained to the media quoted on Saturday, March 25.

For this reason, he continued, NFA has accelerated the process of procuring consumption sugar by Food SOEs.

"We have carried out an assignment, by submitting a letter requesting the assignment of the Minister of SOEs to the Food SOEs, in this case the ID FOOD and PTPN Holding Plantations to procure foreign consumption sugar. The process is already underway and it is targeted that someone will enter in March-April to increase stock and keep prices in the middle of fasting and Eid," he explained.

Through this assignment, the Food SOE ID FOOD and PTPN Holding Plantation will gradually bring in around 215 thousand tons of white crystal sugar (GKP).

The entire licensing process from the Ministry of SOEs and the Ministry of Trade has been fulfilled. The arrival is carried out in stages. In March-May, it is targeted to enter around 99 thousand tons of GKP," he said.

In the context of equitable distribution, the arrival of the GKP in March-May 2023 was carried out in three ports, namely the ports of Tanjung Priok Jakarta, Tanjung Perak Surabaya, and Belawan Medan.

"We will distribute the arrival in three ports so that the distribution is faster and evenly distributed," he explained.

According to Arief, according to the agreement of the Technical Coordination Meeting (Rakornis) and the Ministerial Level Limited Coordination Meeting (Rakortas) in January, this is in order to maintain the stability of supply and food prices in 2023 and strengthen Government Food Reserves (CPP). This step is also in line with the direction of the President of the Republic of Indonesia so that Ministries/Institutions in detail calculate and ensure food stocks for the community during Ramadan and Eid Al-Fitr.

However, Arief continued, consumption sugar is one of the strategic food commodities whose availability still has to be supported by foreign supplies. Given, domestic production has not been able to cover national needs.

Based on the Prognosis of the National Food Balance from January to December 2023, it is estimated that this year the domestic sugar production will be around 2.6 million tons, while the national sugar demand rate in 2023 is around 3.4 million tons.

"The difference still has to be closed by foreign supplies. This foreign procurement step is what we accelerate from the start so that there is no shortage in society, considering this year's fasting and Eid is closer to the beginning of the year and ahead of the sugar milling season," he explained.

Meanwhile, based on the NFA Food Price Panel, the national average price of consumption sugar at the consumer level as of March 24, 2023 is at Rp. 14,416/kg. This price tends to be stable since October 2022 and is still below the Sales Reference Price (HAP) at the consumer level, according to the National Food Agency Regulation (Perbadan) Number 11 of 2022 which stipulates a sugar HAP at the consumer level of Rp. 14,500/kg.