Prices Of Domestic Sugar Sales References Will Follow An Increase In International Markets
JAKARTA - The Ministry of Industry (Kemenperin) said that there would be changes in the Sales Reference Price (HAP) of sugar following the increase in sugar prices in the global market.
Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika said this was due to climate conditions in sugar supply countries that did not support production.
"For May and June there was a slight increase (price). Last year the price of 18 cents of sugar per pound, now it is 26 cents per pound," Putu said after being met at the 2023 Ministry of Industry Working Meeting in the Sudirman area, South Jakarta, Friday, June 16.
Even so, Putu did not specify when the HPP adjustment would occur. He admitted that he was waiting for directions from the National Food Agency (Bapanas). However, he said, his party was trying to make adjustments as soon as possible. "The sooner the better," he said.
Putu also added that sugar imports are not allowed because they are currently entering the harvest period and the sugar milling season, where domestic sugar consumption needs are met from milling.
"Imports for a year are regulated, so imports are not allowed when you start harvesting cane or sugar cane mills. So, at the beginning of this until the end of April or early May it has stopped. We have started imports," he added.
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Previously, the National Food Agency (Bapanas) said that the decline in sugar production in India from 36.5 million metric tons to 32.8 million metric tons was one of the causes of rising sugar prices in the international market.
Badanas noted that there is a potential shortage of exports from India which has a major effect on sugar prices in the global market.
According to Bapanas, India's decline in sugar production will have implications for the potential decline in Indian sugar exports from 9 million MT to around 6 million MT which then drives international sugar prices to become expensive. Plus the impact of the role between Ukraine and Russia.