Principle Changes in Sugar Industry Needed

The plan to import sugar, following the hike in domestic sugar prices, is seen as not helping the government in reducing prices.

"Even if the prices of imported sugar were cheaper, it would be subject to value-added tax, import duty and transportation costs," said Director General of Domestic Trade Subagyo on Friday.

The Department of Trade viewed that the price of imported sugar will be around Rp 9,000 per kilogram. "Therefore, import and domestic sugar will have the same prices. No one will want to import (sugar) if they are of the same prices," said Subagyo.

He went on to say that "local traders are aware of the imported sugar prices. As a result, they sell sugar whose price resembles imported sugar," said Subagyo.

In the future, Subagyo said, the government and the stakeholders have to set out four principle changes. "Sugarcane quality must be improved; sugar factory should be revitalized; sugar factory should be well-managed and is carried out simultaneously taking into account the revised decree No.527/2004 on Sugar Trade Management.

SOURCE: vivanews