The move aims to stabilize sugar prices and ease the burden of unsold stockpiles at sugar mills.
“This capital support allows us to absorb farmers’ sugar at the government’s reference purchase price (HAP), ensuring price certainty and fair returns at the farm level,” said ID FOOD President Director Ghimoyo in a press release on Friday.
The off-take scheme covers sugar produced at mills owned by PT PG Sinergi Gula Nusantara (SGN) and ID FOOD.
As of August, ID FOOD has absorbed 58,000 tons of sugar—21,500 tons from SGN mills, 8,500 tons from ID FOOD mills, 6,900 tons purchased directly from farmers by SGN, and 21,500 tons absorbed by trader associations.
Ghimoyo stressed the need to curb the leakage of refined sugar into the consumer market, which has contributed to falling farm-gate prices, unsold inventories, and failed auctions.
He emphasized that ID FOOD’s initiative aligns with its mandate to maintain price stability for strategic commodities.
Beyond price protection, the policy is designed to ensure long-term sustainability of domestic sugar production.
“By offering competitive purchase prices, we’re encouraging farmers to keep planting sugarcane—essential for strengthening national food security,” Ghimoyo added.
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Translator: Maria Galuh, Kuntum Khaira Riswan
Editor: Aditya Eko Sigit Wicaksono
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