Indonesia will import 450,000 tonnes of white sugar - more than expected - for household consumption in early 2011 to anticipate a fall in sugar production, Trade Minister Mari Pangestu said on Tuesday. The demand may bolster a market already seeing near-record levels for the premiums for white sugar from Thailand.
Premiums for Thai white sugar were steady at $200 a tonne to London futures on Tuesday, within sight of a lifetime high of $250 hit in July. Benchmark London white sugar futures are at around a six-month high above $600 a tonne. An Indonesian government minister said earlier this month that there was a shortage of about 400,000 tonnes since output was estimated to fall to 2.3 million tonnes because of a prolonged rainy season. The rains reduced the sugar content in cane.
"It is aimed at filling the sugar shortage in the domestic market when there is no cane milling at the beginning of the year 2011," said Pangestu. She said the import permits from January to April 15 had been given to six state-owned firms: PTPN X, PTPN XI and PT PPI for 90,000 tonnes each, with 70,000 tonnes for PTPN IX, 60,000 tonnes for Perum Bulog and 50,000 tonnes for PT RNI.
A Jakarta-based trader said firms would likely import from Thailand rather than India because of the lower freight costs. Indonesia bought nearly 500,000 tonnes of white sugar early this year for household consumption. The government also issued import permits for 115,000 tonnes of raw sugar to four local sugar mills in June which have idle capacity and which produce white sugar for households in Indonesia.
Comments
Comments are closed.