Megawati agrees on subsidy plan for sugarcane farmers<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
President Megawati Soekarnoputri has agreed to a plan to
\nsubsidize local sugarcane farmers, according to the chairman of
\nthe Indonesian Farmers Association (HKTI), Siswono Yudhohusodo.<\/p>\n
"The President has emphasized that we need to provide a
\nsubsidy to local sugarcane farmers, but it is only temporary,"
\nSiswono was quoted by Antara as saying after meeting with
\nMegawati on Thursday.<\/p>\n
There were no further details on the form or the size of the
\nsubsidy to be given to the farmers.<\/p>\n
Minister of Trade and Industry Rini M. Soewandi and Minister
\nof Agriculture Bungaran Saragih previously proposed a subsidy of
\nRp 500 for each kilogram of sugar product, as part of the effort
\nto boost the productivity of sugarcane farmers.<\/p>\n
Legislators have also been putting pressure on the cash-
\nstrapped government to provide a subsidy for the farmers.<\/p>\n
Earlier this week, thousands of sugarcane farmers from Java
\nand Sumatra staged a rally at the finance ministry to demand
\nMinister of Finance Boediono approve the subsidy plan.<\/p>\n
But Boediono has so far not yielded to the pressure, only
\nsaying that he has yet to discuss the plan with the related
\nministers.<\/p>\n
According to HKTI, domestic sugar demand will continue to rise
\nin the future, reaching some 10 million tons in 2035.<\/p>\n
Today, the country's total sugar production reaches 1.7
\nmillion tons, with annual consumption at about 3.3 million tons.<\/p>\n
Indonesia, the world's second largest sugar importing country,
\nimported about 2.1 million tons of sugar in 1999, 1.2 million in
\n2000 and about 1.6 million last year.<\/p>\n
Siswono said the government must come up with a plan to boost
\nfarmers' productivity in order to meet higher domestic demand in
\nthe future.<\/p>\n
During the meeting with Megawati, Siswono also asked that the
\nimport tariff on sugar be increased to Rp 1,200 per kilogram from
\nRp 700 per kilogram.<\/p>\n
He said that according to a World Trade Organization
\nagreement, Indonesia was allowed to increase the import tariff on
\nsugar to 110 percent.<\/p>\n
"We must not give in to the pressure of the international
\ncommunity on our import tariff policy," Siswono said.<\/p>\n
Local farmers and the Sugar Association have repeatedly called
\non the government to impose an import tariff of 110 percent to
\nprotect them against cheaper imported sugar.<\/p>\n
Siswono said Thailand and India imposed an 80 percent and 90
\npercent import duty on the commodity, respectively.<\/p>\n
Minister of Trade and Industry Rini issued on Monday a new
\ndecree regulating sugar imports. This new decree authorizes only
\nstate-owned plantation companies to import sugar.<\/p>\n
The decree also stipulates that all sugar imports will be
\nstopped if the price of the commodity falls below Rp 3,100 per
\nkilogram at the level of the sugarcane farmers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/megawati-agrees-on-subsidy-plan-for-sugarcane-farmers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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