In the future, we will prepare strong funding to buy sugarcane during the harvest until the milling season ends, so that farmers' products are bought at a good price.
Jakarta (ANTARA) - The government is seeking to maintain the balance in the national sugar ecosystem by increasing the price of sugar for consumption after adjusting the cost of goods sold (COGS),

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi conveyed the statement in Jakarta on Friday.

"In the past two months, we have asked business actors and state-owned enterprises (SOEs) to buy sugar from farmers at a minimum price of Rp12,500 during the milling season. Now, the condition has changed. However, Bapanas always supports the farmers to receive fair prices in line with economic developments," he expounded.

For now, the government must maintain the balance of the national sugar ecosystem, both by adjusting production costs and balancing the needs of consumers and business actors to realize food sovereignty and farmer prosperity, Adi said.

The COGS adjustment at the producer level has been made in accordance with Bapanas Regulation Number 17 of 2023. With the adjustment, the price of sugar, which was previously Rp11,500 per kilogram, will change to Rp12,500 per kilogram. Meanwhile, the price of sugar for consumption will increase to Rp14,500 per kilogram and Rp15,500 per kilogram for disadvantaged, frontier, and outermost (3T) areas from Rp13,500 per kilogram earlier.

According to Adi, the government is also paying attention to the consistency of sugar business owners in efforts to jointly build a healthy national sugar industry.

In early 2023, when prices were low, the government encouraged business owners to absorb farmers' production at good prices. However, the sugar price actually increased after milling. Therefore, he asked business owners to consistently build sustainable cooperation with the government and other stakeholders.

"In the future, we will prepare strong funding to buy sugarcane during the harvest until the milling season ends, so that farmers' products are bought at a good price," he emphasized.

He said he is committed to strengthening SOEs' role as off-takers for farmers, especially during the milling season to fulfill the Government Food Reserves (CPP).

Furthermore, when the milling season ends, the sugar stock will be released to ensure supply and price stability. Increasing sugar cane production is also a key factor for maintaining national sugar availability, he informed.

"Yesterday, the state-owned food holding, ID FOOD, also received a cheap loan of Rp1.5 trillion in interest subsidies from the Ministry of Finance to strengthen the government's food reserves. It will be used to secure sugar, beef, and cooking oil reserves. With a staple goods reserve, we hope the price can be maintained," he said.

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Translator: Kuntum Khaira R, Resinta Sulistiyandari
Editor: Azis Kurmala
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