Refined Sugar for Consumption Disadvantages Farmers

The government is considered to have violated a regulation regarding the prohibited sale of refined sugar for public consumption. The sales would further suppress the price of sugar produced by domestic farmers.

KOMPAS/TOTOK WIJAYANTO

Several trucks unload a shipment of raw sugar from the Philippines on Tuesday (18/2/2020) at Tanjung Priok Port in North Jakarta.

JAKARTA, KOMPAS -- As many as 99,000 tons of refined sugar, which was supposed to be for the industry, was reallocated for public consumption and was due to be distributed to modern retail and traditional markets starting Wednesday (29/4/2020). This step is expected to immediately cut the price of sugar, which has jumped to more than Rp 18,000 per kilogram in the market.

However, the government is considered to have violated the regulation regarding the sale of refined sugar. According to Trade Minister Regulation No. 1/2019 concerning the Sales of Refined Crystal Sugar, refined sugar is prohibited from being sold for public consumption. The producers of refined sugar are also not allowed to sell their product to distributors, retailers or consumers, but directly to the industry.