Food Agency And Ministry Of Trade Set Sugar Price To Farmers At Rp11,500 Per Kg

White crystal sugar. (Photo: ANTARA)

JAKARTA - The National Food Agency (NFA) together with the Ministry of Trade set a minimum purchase price of White Crystal Sugar (GKP) at the farmer level at IDR 11,500 per kilogram (Kg).

This decision is contained in a joint circular with the Head of the National Food Agency and the Director General of Domestic Trade of the Ministry of Trade Number 65.1/PANGAN/06/2022 and Number 17 of 2022 dated June 10, 2022.

"This price adjustment is for the welfare of sugarcane farmers, I emphasize that all sugar factories, whether managed by food SOEs, plantation SOEs and private companies, provide a minimum auction price of Rp. 11,500 per kg," said Head of the National Food Agency Arief Prasetyo Adi in Jakarta, Wednesday.

The NFA together with the Ministry of Trade, Arief continued, encourage the stability of sugar prices upstream at the farmer level and downstream at the consumer level, which as we know the reference price for downstream sugar is IDR 13,500 per kg.

According to him, this is in accordance with the mandate of President Joko Widodo to encourage the acceleration of sugar self-sufficiency by managing the improvement of upstream and downstream sugar commodities.

"ID FOOD food SOEs, PTPN, private sector, associations and local governments can synergize with smallholder sugarcane farmers to maintain the balance of upstream and downstream to accelerate sugar self-sufficiency, increase partnerships, expand land, synergize with other stakeholders, thereby minimizing dependence on imported sugar commodities," said Arief.

According to him, collaboration is important for improving food governance, which is also in accordance with what was mandated by President Joko Widodo at the Plenary Cabinet Session of the DPR RI.

"A good orchestration is needed between ministries/agencies, SOEs, the private sector and the regions to fulfill domestic needs and increase food production for Indonesia's food export potential," said Arief Prasetyo Adi.