Wed, 03 Mar 2004

Riau entry point for smuggled sugar

MEDAN, North Sumatra: The waters of North Sumatra and Riau, particularly around the industrial island of Batam, are believed to be the main entry point for sugar smuggled from India, local businessmen said on Tuesday.

The commodity enters Indonesia through the Malaysian port of Klang aboard boats, said two businessmen who declined to be identified.

Most of the smuggled sugar enters through the waters of Riau, West Sumatra and North Sumatra, they said.

Meanwhile, North Sumatra's provincial industry and trade office recently clamped down on a number of sugar traders suspected of hoarding smuggled sugar, uncovering 21,500 tons of the questionable sugar in their warehouses.

Smuggled sugar is sold for between Rp 3,900 and Rp 4,000 per kilogram, while domestic sugar costs between Rp 4,800 and Rp 5,000 per kilogram. -- Antara