Sugarcane farmers to lose Rp 11.7b

Sugarcane farmers to lose Rp 11.7b

JEMBER, East Java: At least 3,000 sugarcane farmers in Jember regency, East Java, could sustain a potential loss of Rp 11.7 billion due to a recent large fall in the price of sugar in the area.

M. Syahdan, head of the plants division at Semboro, a sugar processor, said on Saturday that the farmers, who worked a 6,000- hectare sugarcane plantation, would suffer the losses because one kilogram of sugar was priced at Rp 2,600, much lower than previously, at Rp 3,200.

He said that local sugar supplies met only 50 percent of the national sugar demand of 3.2 million tons but that had not boosted the market price due to the presence of imported sugar, which attracted only a 25 percent government import tax.

"The government should increase the tax to 110 percent, as regulated by the World Trade Organization, otherwise local sugar producers will be forced to close their businesses," Syahdan said.--Antara