India grants 92 tons of sugar to Indonesia

India grants 92 tons of sugar to Indonesia

JAKARTA (JP): The Indian government on Tuesday donated 92
metric tons of sugar to Indonesia, intended to help poor people
affected by the country's economic crisis.

The sugar donation, worth Rp 260 million, was symbolically
handed over by Indian Ambassador M. Venkatraman to State Minister
of Food and Horticulture A.M. Saefuddin in a ceremony at the
minister's office.

Saefuddin said the sugar aid would be distributed to people in
West Kalimantan, which has been suffering from a scarcity of food
products since ethnic riots broke out in the area early this
year.

"On behalf of the people and the Indonesian government, I
would like to express our gratitude to the government of India
for its strong support for us. The sugar will be distributed
directly to the poor people in West Kalimantan," he said.

"The government and people of India are sympathetic to our
brothers and sisters in Indonesia who are being affected by the
present economic crisis." Ambassador Venkatraman said in his
speech.

He said the humanitarian assistance was provided under the
ongoing Indian Technical and Economic Cooperation scheme between
the two countries.

He added that the Indian government had given similar
assistance, consisting of baby milk powder worth Rp 420 million,
in December last year.

Saefuddin said the economic crisis that has plagued Indonesia
since early July 1997 had made the country the world's biggest
recipient of food aid in 1998/1999 period.

So far, Indonesia has received food donations amounting to 1.9
million metric tons of rice, 6,500 tons of powdered milk, 260
tons of blended food, and many other things, he said.

Import duties

Saefuddin said that the sugar donation would not hurt the
ailing local sugar industry due to its small amount and its
specific target.

He said he had sent a letter to the coordinating minister for
economy, finance and industry, proposing the government impose an
import duty of between 20 percent and 30 percent to help the
ailing local sugar industry.

"We will discuss the proposal in the next ministerial meeting.
But the decision to impose import tariffs will lie on the hands
of the minister of industry and trade and the minister of
finance," he said.

Sugar farmers and the local sugar industry have been on the
brink of collapse due to an influx of cheap imported sugar.

Lower international prices stemming from a sharp decline in
demand and a stronger rupiah have made imported sugar cheaper
than locally produced sugar.

According to Saefuddin, the price of local sugar is currently
between Rp 2,400 and Rp 2,500 per kilogram, while the price of
the same quality of imported sugar was set at Rp 1,800 per
kilogram.

"Based on calculations that the FOB price of sugar is US$220
per ton, imposing a 20 percent import duty would bring the price
of imported sugar to the same level as locally produced sugar,"
the minister said. (gis)