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Two Main Causes of Sugar Price Rise

JAKARTA, KOMPAS.com - Chairman of the Association of Sugar and Wheat Flour (Apegti) Natsir Mansyur admitted that the price of white sugar into the hands of consumers in some areas has increased to 5 percent range and is generally above the price of Rp 10,000 per kilogram (kg).

"Our Watchlist sugar prices are rising and not less than Rp 10,000 per kg," said Tribunnews.com Natsir when confirmed, Monday (07/28/2010).

According to him there are two main causes of the current sugar price increases. First, because the 350 thousand tons of sugar imports to Indonesia some time ago has not resulted in no seepage distributed refined sugar (sugar with high purity quality, commonly used by food and beverage industry).

"Sugar imports are held by some groups and not released into the market may wait for higher prices resulted in a rare sugar stocks in the market so the price rises," he said. The second factor for the sugar harvest back to August 2010. "

Reduced because of the expected stocks could rise after the harvest season this month turned back to August. Imported sugar stocks should make up the lack of sugar in the market but in fact detained, "said Natsir.

If these conditions hold continuously, Natsir's worried about the price of sugar will continue to increase. "It takes a firm government's will about this," he said.