Bulog to import up to 1 million tons of sugar<\/p>\n
JAKARTA (JP): The State Logistics Agency (Bulog) plans to
\nimport between 900,000 metric tons and 1 million tons of sugar
\nthis year to meet domestic demand.<\/p>\n
Bulog chairman Beddu Amang said Tuesday that 50 percent of the
\nimported sugar would be white sugar, while the other half would
\nbe raw.<\/p>\n
The imported raw sugar is to be processed by sugar mills in
\nthe country.<\/p>\n
\"We can reduce our costs by importing raw sugar since it is
\nless expensive than white sugar. This will also cut the subsidy
\nneeded to import sugar. Besides, its value will be increased
\nafter our sugar mills process it,\" Beddu said.<\/p>\n
Beddu said Bulog planned to import low-quality white sugar in
\norder to keep expenses down.<\/p>\n
\"Importing low-quality white sugar could save us between US$30
\nand $50 per ton,\" he said.<\/p>\n
Australia sold about 20,000 tons of raw sugar to Indonesia
\nlast week and is eyeing a bidding process scheduled for next
\nweek, Queensland Sugar Corp. (QSC) chief executive David Rutledge
\nsaid yesterday.<\/p>\n
Indonesia held its first transparent commodities tender last
\nweek, which Rutledge described to Reuters as \"very professionally
\nconducted\".<\/p>\n
Indonesian officials said July 30 that they had bought 30,000
\ntons of raw sugar and 202,000 tons of white sugar in the tender.<\/p>\n
\"Clearly it's something that we'll have a look at,\" Rutledge
\nsaid of next week's bigger Indonesian tender for 500,000 tons of
\nraw sugar, but he declined to say if QSC would bid.<\/p>\n
Indonesia's tender last week was \"very competitive\", with
\nsugar on offer from a number of parties, he said. He declined to
\ndisclose prices for the Australian sugar.<\/p>\n
Beddu said Bulog's sugar stocks had become depleted after the
\nagency reduced its purchases of the commodity from local sugar
\nmills following the government's decision to liberalize the
\ndomestic sugar trade two months ago.<\/p>\n
Under the scheme, private and state sugar mills are allowed to
\nsell 25 percent of their production output directly to the
\nmarket, while the remaining 75 percent must be sold to Bulog.<\/p>\n
Previously, they were obliged to sell 100 percent of their
\noutput to Bulog.<\/p>\n
The move has caused a sharp drop in Bulog's stocks, prompting
\na sharp retail price increase to Rp 3,500 from Rp 2,500
\npreviously, Beddu said.<\/p>\n
The government recently directed Bulog to stabilize sugar
\nprices in response to the increases. (gis)<\/p>",
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