Indonesia Sees Higher 2009 Refined Sugar Consumption

Jakarta, - Indonesia may consume 1.85 million tonnes of refined sugar in 2009, an increase of nearly 6 percent from this year's estimated consumption of 1.75 million tonnes, Industry Minister Fahmi Idris said.

"The initial indication for refined sugar requirement for food and beverage industries (in 2009) is 1.85 million tonnes," Idris told a meeting with sugar industry officials.

The industry ministry normally recommends how much refined sugar and raw sugar will be needed in the next year so that the trade ministry can set a quota for imports.

Indonesia imported about 1.375 million tonnes of raw sugar in 2008, to produce 1.25 million tonnes of refined sugar, he said. It also imported 500,000 tonnes of refined sugar in 2008.

The government has delayed issuing import quotas for next year because of oversupply.

It has said Indonesia will not import white sugar for household use and will curb imports of high-quality white sugar for industrial users next year to curb rising stocks.

Indonesia was traditionally one of the biggest sugar importers in Asia, but it is scaling back imports as it faces a glut due to the combination of a bumper cane crop and a build-up in stocks from last year. The glut has pushed down domestic prices reducing profits for local cane farmers.

Indonesia's white sugar production from local cane plantations has reached 2.78 million tonnes this year, exceeding consumption of 2.73 million tonnes, said Achmad Mangga Barani, director general of plantations crop at the agriculture ministry.

He said the stock of white sugar from local cane plantations may hit 1.1 million tonnes by the end of 2008, while stocks of higher-quality refined white sugar may reach 89,000 tonnes.

"A stock of 1.1 million tonnes of white sugar can be used as a buffer stock for five months' consumption in 2009. That's why we do not need to import," he said.

The Indonesian Sugar Council has forecast that domestic sugar supply, including production from local cane plantations and imports of other types of sugar, will reach 6.2 million tonnes this year, exceeding consumption of 4.9 million tonnes.