Surabaya (ANTARA News) - Indonesian Sugar Association assessing the farmer benchmark price proposal

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Surabaya (ANTARA News) - Indonesian Sugar Association assessing the farmer benchmark price proposal or cost of sales of sugar in 2014 amounted Rp9.500/kg quite realistic, importer because some components rising production costs. Senior Advisor to the Indonesian Sugar Association (AGI) Adig Kelvin when contacted in Jakarta, Monday, said rising production costs, particularly the cost of farming, some of which are also not free from government policies related to the reduction of fuel subsidies and wage hikes. "If you look at the increase in production costs to be incurred at this time farmers, the sugar of the proposed HPP (Rp9.500/kg) feels quite realistic. However, the final decision remains in the hands of the government," he said. Meeting of Indonesian Sugar Council (DGI) in the Ministry importer of Agriculture in Jakarta, Tuesday (11/3), which is led by the Minister of Agriculture Suswono and attended by Commerce Minister M Lutfi and sugar associations, agreed HPP 2014 is Rp9.500/kg. "Determination of the sugar HPP have to consider the cost of goods manufactured for Rp8.740/kg which is the result of studies academics from the University of Jember, University of Gajah Mada and Bogor Institute of Agriculture," said Deputy Minister of Agriculture DGI Rusman Heriawan after the meeting was over. HPP is a sugar production cost plus 10 percent to obtain the figures around Rp9.500/kg. "However, the amount of sugar HPP is still the DGI proposal for submission to the Secretary of Commerce to be used as statutes," he said. According Adig Kelvin, based on the experience of previous years, HPP set by the government are usually lower than DGI proposals, after considering various factors, including the world sugar price. importer Moreover, the condition of the world sugar prices are currently declining which ranges from 470-480 U.S. dollars per ton FOB (price in the country of origin does not include shipping cost and premium) for shipment in May 2014 or about Rp7.800/kg up in warehouses Indonesian ports. "However, importer these factors are also not fully used as a reference, because no matter how farmers importer and sugar mills need to get protection from the government so that productivity does not decline," he said.
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