Jakarta, Mar,19. Sugar prices may be driven north this month on the back of spiraling international prices and decreasing domestic supplies. It is typical of sugar prices to zoom northward when the consumption and demand of sugar takes off.
The sugar price may well touch US$800 per ton by December this year. At that point in time the public may have to pay about Rp 11500 for 1 Kg of sugar. If sugar prices creep up to that high, the price of imported sugar may well touch Rp 11500 per Kg, or $1.17 per Kg. A statement to this effect was made by Indonesian Sugar and Flour Traders Association head Natsir Mansyur.
The Indonesian government set a production target of 2.7 million tons of sugar for this month.However there is little hope of the national production of sugar to reach the targeted level, Natsir opined. The national production of sugar could go only as far as 2 million tons, a pessimistic Natsir informed.
It has been seen that sugar prices spiral north during Christmas season and the New Year’s as global consumption and demand of sugar during the festive season experience a surge. To meet domestic demand and increased consumption, increased domestic production as well as import of sugar assumes significance.
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