Domestic sugar prices in Indonesia, Southeast Asia's largest consumer, approached their highest levels in more than a year this week on uncertainty over when a government-appointed trading house would start importing the sweetener.
The average retailer's daily white sugar price was 11,099 rupiah ($1.21) per kg on Tuesday, up from 11,024 rupiah the previous day and not far from the 11,178 rupiah touched last January, Indonesian trade ministry data showed late on Wednesday.
The government has appointed PT Perusahaan Perdagangan Indonesia (PPI) to import 240,000 tonnes of raws this year to make up for a white sugar shortage before the domestic milling season starts in May. The sweetener must arrive in Indonesia in March or April. "PPI got the license and they haven't purchased anything," said one Indonesia-based trader. "I've no idea why. The rumour was that they could not get agreement with some of the refineries."
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