Indonesia's white sugar stocks stand at 800,000 tonnes, sufficient to cover domestic consumption in the next four months, said trade minister Mari Pangestu on Tuesday. The comments indicate that Southeast Asia's biggest sugar consumer may not be in a rush to import the sweetener, potentially easing pressure on sugar prices in London and New York.
Indonesia issued permits in September last year to six state firms to import a total of 450,000 tonnes of white sugar for household consumption this year to bridge an anticipated shortfall in production and cover consumption until crushing season starts in May. But so far only PT PPI that has bought white sugar, securing 30,000 tonnes from India and Thailand recently.
"Sugar stocks currently cover 4 months consumption. So if firms decide not to import, it will be fine because it means stocks are sufficent," Pangestu told reporters. "But if they do import, it will be good too. We can use the sugar to strengthen national stocks," she added. High prices, driven by rallies in futures prices in London and New York , have dampened interest, with state procurement agency Bulog failing to secure any of the 60,000 tonnes of white sugar it sought in two tenders last year. Aside from Bulog and PT PPI, other firms that receive permits said they were preparing for tenders but still waiting for prices to fall and the government to issue a decree that scrap import duties on several food products as it try to reign inflation.
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