RI sugar imports may reach six-year high, U.S. says<\/p>\n
Jason Gale, Bloomberg\/Singapore<\/p>\n
Indonesia's sugar imports may surge 24 percent to a six-year high
\nin the coming 12 months as local suppliers struggle to meet
\ngrowing demand for the sweetener, a U.S. government agricultural
\nattache said.<\/p>\n
Indonesia, the world's third-largest sugar importer, will
\nprobably buy the equivalent of 1.8 million metric tons of the
\ncommodity in the year ending April 30, 2006, the U.S. Foreign
\nAgricultural Service in Jakarta said. That's up from 1.45 million
\ntons a year earlier and the highest since 1999-2000.<\/p>\n
Attempts to cut Indonesia's import bill in the wake of rising
\nsugar prices are failing because farmers and processors haven't
\ninvested enough money in improving productivity, Chris Rittgers
\nand Niniek S. Alam said in the report. Increased demand from
\nIndonesia may help buoy sugar prices, which have gained 23
\npercent in New York the past year.<\/p>\n
\"The Indonesian sugar industry faces numerous obstacles,\"
\nRittgers and Alam said. \"Smallholder farmers, who lack the
\nresources to invest for increased productivity, dominate sugar-
\ncane production. Furthermore, the milling sector, largely
\ngovernment of Indonesia-owned, is inefficient and requires
\nsignificant investment to attain any sort of business viability.\"<\/p>\n
Indonesia will produce the equivalent of 1.8 million tons of
\nraw sugar in the year ending April 2006, 12 percent less than a
\nyear earlier, the report said. Consumption is forecast to grow 7
\npercent to 3.8 million tons.<\/p>\n
The shortfall will be met by a further 200,000 tons of sugar
\nfrom the country's inventories, reducing stockpiles to 920,000
\ntons by April next year, the report said.<\/p>\n
Indonesia's sugar imports are mostly supplied by Thailand and
\nAustralia. Only Russia and the European Union imported more sugar
\nin 2003, according to the International Sugar Organization.<\/p>\n
Raw sugar for delivery in July rose yesterday for the second
\nstraight day, gaining 0.13 U.S cent, or 1.6 percent, to 8.43
\nU.S.cents a pound on the New York Board of Trade. Prices reached
\n9.37 cents a pound on Feb. 22, the highest closing price for a
\nmost- active sugar futures contract in four years.<\/p>",
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