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Indonesia expects its white plantation sugar production to climb The government forecasts output of plantation white sugar will reach 2.6-2.8 million tonnes in 2008, up from an estimated 2.4 million tonnes in 2007. Plantation sugar is consumed by households.
"We expect to expand sugar cane plantations and plant them with new crops. Some sugar mills in Java have also started replacing old machines with new ones to increase productivity," said Ahmad Mangga Barani, director general of plantation crops at the agriculture ministry.
"This will help us achieve a target of 3.3 million tonnes next year," he said, adding that output would be sufficient to meet local demand, expected to be 2.7 million tonnes in 2009. White sugar from domestic plantations is mainly used for household consumption and is part of the staple diet for Indonesia's more than 220 million people. Cane plantation area in Indonesia, Southeast Asia's largest sugar buyer, are expected to rise by 3 percent to 432,354 hectares (1.07 million acres) in 2008, from 419,718 hectares in 2007, according to data from the agriculture ministry.
Indonesia, which imports sugar for both industrial and household use, mostly buys the sweetener from Thailand and Australia. Indonesia has said it plans to import 110,000 tonnes of white sugar this year as a buffer stock. The country imported 450,000 tonnes of white sugar for household use in 2007.

Copyright Reuters, 2008

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