Farmers ask govt to curb sugar imports

Nana Rukmana, The Jakarta Post, Cirebon

Thousands of sugarcane growers and workers at sugar plants in Cirebon, West Java, rallied on Friday to demand the government reduce sugar imports blamed for the steep fall in sugar prices.

"The government has taken sides with foreign farmers. We're very disappointed," said Mohammad Anwar, chairman of the Indonesian Sugarcane Growers Association (APTRI).

He said sugar prices fell to around Rp 2,700 per kilogram (31 U.S. cents), below the production cost of Rp 3,000.

Sugar farmers, he said, usually sold their sugar for Rp 3,200 or more.

Anwar said the influx of imported sugar from countries like Thailand had driven prices down. "Their sugar sells at a much lower price."

He said the price of imported sugar was between Rp 2,500 and Rp 2,600 a kilogram and is sold with a 25 percent import tariff.

"This import duty is hurting farmers' welfare," he said, adding the recent import of 3,000 tons of sugar from Thailand through Cirebon had triggered farmers' anger.

Last Wednesday, around 1,500 sugarcane growers and workers of sugar companies stormed the city's port in an attempt to destroy imported sugar. Police interfered and foiled the move.

Anwar said earlier the government should stop importing sugar when local farmers were harvesting their crops.

Production from Cirebon's three sugar companies, PG Sindang Laut, PG Tersana Baru and PG Karangsembung, is enough to supply the city and West Java's north coast.

Around 36,000 farmers depend on the local sugar industry for their livelihood, he added.

Analysts have said local sugar producers are inefficient and should have their plants overhauled to compete with overseas producers.

Minister of Industry and Trade Rini Soewandi has said the government will announce a rise in sugar tariffs this week.

She did not say how much the increase would be, adding the plan was awaiting approval from the finance ministry.