"The price as stipulated in the trade ministers regulation harms the interest of farmers because the Reference Price of Farmers Sugar (HPP) is still lower than the basic production cost (BPP), which is set at Rp10.6 thousand per kilogram. The HPP should ideally be higher than the BPP," Executive Board Chairman of APTRI Soemitro Samadikoen said in a written statement in Jakarta on Wednesday.
Trade Ministers Regulation No.27/M-DAG/PER/5/2017 has stipulated the HPP to be at Rp9.1 thousand per kilogram and the HET at Rp12.2 thousand per kilogram at the consumers level.
Samadikoen explained that farmers objected to the imposition of the HET in the market and the price at Rp12.5 thousand per kilogram at the retail level because in reality, traders purchase farmers sugar at a level below Rp10 thousand per kilogram (below the production cost) so that the farmers sugar price could drop to Rp9.1 thousand per kilogram.
"The retail ceiling price (HET) should be over the HPP. However, the current HPP and HET levels clearly harm the interest of farmers," he revealed.(*)