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)