Indonesia Firm Says May Not Meet Sugar Import Plan

Importing firm Usaha Baru would buy only 20,000 tonnes of Thai raw sugar for mid-November arrivals, said Hari Subagio, a company official in charge of seeking importers via an open tender.

News of the lower purchase and other cancellations would make it harder for Southeast Asia's biggest sugar consumer to bring down domestic sugar prices.

PTPN II is among the state firms which obtained permits to buy raw sugar to be processed into white sugar for direct consumption. The move aims to boost sugar stocks and reduce prices, which have surged to record level above 11,000 rupiah ($1.14) per kg in line with a jump in global prices.

"We are still not sure what to do with the rest of our import permits," Subagio told Reuters by telephone from Medan, in North Sumatra.

Another state firm, PT Perkebunan Nusantara X, previously cancelled its plan to import 50,000 tonnes of raw sugar because importers had not been able to bring in the sweetener this month as anticipated.

Source: Reuters