Sugar factories closed due to cane shortage<\/p>\n
BANDUNG (JP): Three of eight state-owned sugar factories in
\nWest Java have been closed down due to a prolonged shortage of
\nsugarcane supply from farmers.<\/p>\n
Mulyadi, head of plantation directorate of the provincial
\nMinistry of Agriculture and Plantation's office, said sugar
\nfactories in Gempol, Jatiwangi and Kadipaten had to stop their
\noperations after suffering from big losses over the last nine
\nyears.<\/p>\n
In 1990 there were about 15,254 hectares of sugarcane
\nplantations in West Java, but the number dropped by 30 percent
\nlast year, he said.<\/p>\n
Demand for domestic sugar declined due to the fact that the
\nprice of imported sugar is cheaper than the local product which
\nin turn led to lower sales and a drop in the area of sugar
\nplantations.<\/p>\n
PT Rajawali Nusantara, a state-owned firm which manages sugar
\nfactories in the province, is only able to maintain factories in
\nKarang Suwung, Sindang Laut, Tersana Baru, Subang and Jatitujuh,
\nsaid Mulyadi.<\/p>\n
\"PT Rajawali Nusantara suffers between Rp 4 billion and Rp 12
\nbillion in losses per year due to scarcity of raw material,\"
\nMuladi noted.<\/p>\n
Meanwhile, a provincial councillor Yudi Widhiana Adi revealed
\nthat the remaining five sugar factories in West Java are also
\nfacing serious shortages of sugarcane supply, as most banks in
\nthe province are still reluctant to provide cheap credit for
\nsugarcane farmers, an official said on Saturday.<\/p>\n
Only state-run bank BNI and Bukopin have agreed to provide
\nloans with some Rp 25 billion and Rp 10.5 billion in low interest
\ncredits from the respective banks said to be at hand.<\/p>\n
Yudi said there is hope the situation may be improving for
\nsugarcane farmers in the future as sugar prices are getting
\nbetter.<\/p>\n
\"But banks are still reluctant to channel credit, although the
\nbusiness is quite promising,\" said Yudi.(25)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sugar-factories-closed-due-to-cane-shortage-1447893297",
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