Ban sugar import: Farmers

Ban sugar import: Farmers

JAKARTA (Reuters): Indonesian sugar producers asked the government to ban imports until the harvest ends in November, the state-run Sugar Council said on Wednesday.

Council Executive Director Tjolosewoko said recent sharp gains in the rupiah against the dollar had made imported sugar more competitive in the domestic market and was adding downward pressure on the locally-grown sugar currently being harvested.

Indonesia's sugar harvest runs from May to November.

"The situation is more difficult for farmers if imported sugar is still coming in during those months," Tjolosewoko said.

Tjolosewoko said when the rupiah hit Rp 8,400 against the dollar recently, imported sugar was sold at Rp 3,400 (39 U.S. cents) in Jakarta's markets, compared to Rp 3,600 - Rp 3,800 per kilograms for locally-grown produce.

Tjolosewoko said the council would meet with importers and finance and trade officials on Aug 22 to discuss ways to protect the local sugar industry from cheap imports.

Indonesia imported some 2.1 million tons of sugar in 1999 and only 1.2 million tons in 2000 because of the tumbling currency, high international sugar prices and a glut in domestic supplies.