Sugar Market Operation Tomorrow Friday clerics in Three Points

In response to rising sugar prices, the Office of Trade and Industry in East Java with the eight major distributors spread sugar market operations, Friday (28 / 8) in the three markets, namely markets Bendul Merisi, PUCANG Market, and Market Rejo Pond. With the expected market operations, the price of sugar stabilized

Head of Domestic Trade Department of Industry and Trade of East Java, Arifin T Hariadi said, at every operating point the sugar market will be supplied approximately 3.5 tons to 5 tons. The distributor agreed to throw the price of sugar at the end of the level of consumer (end user) Rp 7,500 per kilogram, said Arifin, Wednesday (26 / 8) after the coordination meeting with the businessmen of sugar in Surabaya.

Benchmark price of sugar Rp 7,500 per kilogram at the market operation is much cheaper than the tender price of sugar during the sugar factory with a distributor, which is USD 8371 per kilogram. In fact, the price of sugar in the market rate has now reached the level of Rp 9500 per kg to Rp 9700 per kg.

Assistant II, Economic and Regional Development Secretariat of East Java Djaelani Chairul said, with operations expected to market the cheaper the price of sugar because the sugar distribution chain trimmed.

We cannot do something like rice price increases. Therefore, we would urge the sugar distributors to apply a minimum price with a minimum benefit to society not burdened, he said.

One of the distributors of sugar as well as Chairman of the Indonesian Sugar Association Entrepreneurs (APGI) Pieko Nyotosetiadi states, distributors dare sell sugar more cheaply than the tender price. We do have social programs for the community, especially when the price of sugar rises like this, he said.

To avoid re-sale sugar, Department of Industry and Trade of Java limits the maximum purchase of two kilograms of sugar during the market operation.

Foreign Influence

Company Secretary Company PT Nusantara (PTPN) XI Adig Suwandi said, the increase in domestic sugar prices rising influence of foreign sugar prices. Sugar price increases occurred abroad, including in India and Brazil.

In India, crop failure, initially 26 million tons per year dropped to 16 million tons per year. While in Brazil occurred sugar into ethanol substitution for ethanol prices higher, he said.

According to Adig, sugar production in 2009 is predicted to reach 2.7 million tons. This production will be consumed as approximately 2.6 million tons. But, because the price of sugar on expensive overseas reached U.S. dollars 550 dollars per ton, so much food and drink manufacturers to lower middle initial use of refined sugar turns to a local sugar.