Heat Guarantees Farmer's Sugar Prices Don't Drop When There Are 200 Tons Of GKM Imports

JAKARTA - The National Food Agency (Bapanas) guarantees that the government will continue to absorb the harvest of domestic sugar cane farmers, including the price of sugar farmers will not fall when there is import of raw crystal sugar (GKM).

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi after the Limited Coordination Meeting (Rakortas) with the Minister of Agriculture Andi Amran Sulaiman and other stakeholders in Jakarta, Monday, February 17, said that the government has set a reference selling price (HAP) for sugar at the farmer level at IDR 14,500 per kilogram, while the price at the sugar factory reaches IDR 15,700 per kg.

"We have to guarantee that the price of sugar at the farmer level is still Rp. 14,500 per kilogram (kg). Number one is, it needs to be noted, we have to keep the price of sugar, the price of sugar cane from farmers, the price cannot fall, because we have agreed that the price is Rp. 14,500 per kg," said Arief, quoted by Antara.

He said that the GKM import plan was part of a step to strengthen government food reserves (CPP), especially anticipating fluctuations in consumption sugar prices ahead of the 2025 fasting and Eid al-Fitr.

In addition to the GKM import plan which will later be processed into consumption sugar, the government also ensures domestic absorption where sugarcane harvest is projected from April to May.

"Yes, both of them are on (domestic absorption and imports of GKM). The harvest will be in April and in May. So it will still be absorbed," said Arief.

According to him, the plan to import 200 thousand tons of GKM will not last up to three weeks in meeting domestic needs, because sugar consumption in Indonesia reaches 250 thousand tons a month.

"As many as 200 tons, it doesn't take three weeks. Because we need 250 thousand tons a month," he said.

Arief said that the GKM import assignment would be carried out by state-owned food companies such as ID FOOD, Perum Bulog or PT Perkebunan Nusantara (PTPN).

However, he did not mention when the import plan would be carried out, including the intended country.

"This takes time, because we have finished getting the minutes, after that we can ask them to bid for assignments from the Minister of SOEs. Because these are SOEs in the food sector. Later the Food Agency will of course together with the relevant ministries, including the Coordinating Ministry for Food to prepare it," he explained.

Furthermore, Arief admitted that currently, the existing sugar stock must be removed from the warehouse due to an increase in prices in a number of areas. After the warehouse stock is issued, it will be filled again from the domestically generated harvest.

"So, the reserves that now have to be spent. Because if today's sugar price goes up. It means that the current sugar stock must be released. It must be issued immediately. So that later it will enter new stock, one of which is from the harvest in April and May. April, it will only harvest sugar cane," he said.

He mentioned that the existing sugar stock is around 4.5 million tons. The stock is prepared until it enters the sugarcane harvest period.

"Now when asked about our stock of around 4.5 million tons, the stock is up to the next five months. Until later, it is usually prepared up to the cane harvest. Our sugarcane harvest. Now the cane has not yet been harvested," said Arief.