Indonesian Sugar Association Calls for Higher HPP

The Indonesian Sugar Association (AGI) has called on the government to rise the farmer’s buying price (HPP) for sugar to Rp8,500 per kilogram. “It will serve as a guarantee from the government that farmers will get reasonable prices to produce sugarcane,” AGI executive director Tito Pranoloh told Tempo on Monday, April 28, 2014. 

Tito said the government had yet to increase the HPP for sugar since 2012 and it was currently still pegged at Rp8,100 per kilogram. He added the government even set the HPP for sugar as low as Rp7,000 per kilogram in 2011.

Tito said the proposal to increase the HPP for sugar was triggered by multiple reasons, among them the higher production costs such as land rental rates, fertilizer and transport. He added it would take around Rp15-20 million to harvest a hectare of sugarcane field.

In addition, Tito said, the government must also consider the global sugar prices when determining the HPP for sugar.

Trade Minister Muhammad Lutfi, meanwhile, said he had listened to suggestions from all parties at the National Sugar Council prior to setting the new HPP for sugar. “It will be announced soon, probably next week,” he said. 

source : tempo.co