RI to move forward 2006 sugar import permits

RI to move forward 2006 sugar import permits

The government may issue white sugar import permits for 2006 earlier than scheduled, to allow importers to engage in forward buying when prices are better, Minister of Trade Mari E. Pangestu said on Wednesday.

The government may issue the permits in August or September, Mari said. Last year, the government only issued import permits in December.

"We've agreed to issue the permits earlier so that importers can plan purchases and buy forward," Mari told reporters.

However, based on the current policy, white sugar can't be imported during the crushing season, which normally runs from May to November, to protect domestic sugar prices.

The minister didn't specify the quantity of white sugar imports for next year, because the government still needs to review current sugar stocks and output from this year's crushing season.

Sugar importers in Indonesia have often been forced to buy sugar even when prices were high, because of limited time between the issuance of permits and shipping deadlines.

This year, the government has already issued permits to import 500,000 metric tons of white sugar and 227,000 tons of raw sugar to cover expected shortfalls in domestic production.

Indonesia placed import restrictions on sugar in 2002 because of rampant smuggling of the commodity into the country.

Indonesia, a major sugar importer in Asia, is forecast to produce 2.2 million tons of sugar this year, while household and industrial consumption averages between 3.2 million and 3.3 million tons annually. -- Dow Jones