Home » Sugar price rises to IDR 16 thousand at retailers, Papua to IDR 17 thousand

Sugar price rises to IDR 16 thousand at retailers, Papua to IDR 17 thousand

The National Food Agency (Bapanas) has increased the price of sugar in retail stores, aka retailers, to IDR 16 thousand to IDR 17 thousand per kg.

Bapanas Deputy for Food Availability and Stabilization I Gusti Ketut Astawa said the increase was made in the midst of the El Nino phenomenon which increased international sugar prices. He hopes that this policy can maintain supply and price stability in the country.

“Based on the results of these inputs, we appeal to all retail business actors to implement the price relaxation in question,” he said in an official statement, Thursday (9/11

However, Bapanas said the price tag of IDR 17 thousand per kg only applies to Maluku, Papua, as well as Disadvantaged, Outermost, Remote and Inland (3TP) areas.

Bapanas predicts sugar production will fall due to El Nino from the initial estimate of 2.6 million tonnes to 2.3 million tonnes. On the other hand, Ketut said that the realization of imports of raw crystal sugar (GKM) was only 180 thousand tons or 22.61 percent and white crystal sugar (GKP) 126,941 tons or 58.82 percent.

He revealed that several companies that had GKM import quotas had not realized them. In the end, high international sugar prices make it difficult to sell according to the reference purchasing price (HAP) at the consumer level.

The HAP for sugar is regulated in National Food Agency (Perbadan) Regulation Number 17 of 2023 which states that the HAP for sugar consumption at the producer level is IDR 12,500 per kg and at the consumer level IDR 14,500 per kg. Meanwhile, specifically for Eastern Indonesia and the 3TP region, the price is set at IDR 15,500 per kg.

“So, apart from optimizing domestic absorption and accelerating imports, it is proposed to provide sales price flexibility at the consumer level. In the future, retail business actors can sell consumer sugar at a price of IDR 16 thousand per kg,” he said.

Meanwhile, the National Strategic Food Price Information Center (PIHPS Nasional) noted that the price of local granulated sugar in the modern market is still IDR 14,950 per kg. Meanwhile, premium quality granulated sugar is priced at IDR 15,600 per kg.

Source: CNN