Govt To Launch Market Operations To Stabilize Sugar Price

Palembang, S Sumatra (Antara Bali) - The government is set to launch market operations nationwide on Tuesday to stabilize sugar prices ahead of the fasting month of Ramadhan, secretary of the Trade Ministry Sri Agustina said.

The government has appointed state-owned company, PT Perusahaan Perdagangan Indonesia (PPI), to conduct market intervention, she said after inspecting a bazaar for crystal white sugar at Cinde Market here.

"The PPI is organizing a bazaar at 60 markets across Indonesia, including Jakarta, Cirebon, Madiun, Surabaya, Bandung and Palembang. The 18-day bazaars will end seven days before Ramadhan and will facilitate shopping in 500 markets," she said.

Stabilizing sugar price has been at the center of the government's attention as the commodity invariably leads to inflation, particularly ahead of the fasting month of Ramadhan and Ied al-Fitr, she said.

She noted that the price of sugar has steadily increased in markets, compared to what it was in the same month last year.    

Sugar is currently being sold for Rp11,800 per kg in Java and Rp12,500 per kg in Sumatra, while in the eastern parts of Indonesia, the price has reached Rp16,000 per kg.

"At the national level, sugar prices average Rp14,800 a kg. Once the market operation is put in place, it will return to Rp12,500 per kilogram," she explained.

She said the practice of conducting such market operations has been on since long as sugar stocks are expected to decline ahead of Ramadhan and Ied al-Fitr. (WDY)