Food and Beverage Industry Faces Raw Sugar Shortages

The Trade Ministry has yet to issue raw sugar permits for 2020, while refined crystal sugar stocks in food and beverage factories are running low and even running out. General Chairman of the Food and Beverage Business Association (Gapmmi) Adhi S. Lukman told Kontan on Tuesday (1/21) that four food and beverage factories were forced to stop operation due to running out of refined crystal sugar stocks. Adhi said the government had set a quota of raw sugar imports for the first half of 2020 demands by around 1.9-2 million tons.

Not only did the food and beverage entrepreneurs, but refined sugar producers also complained about the slow approval of raw sugar imports. Indonesian Refined Sugar Association (AGRI) Chairman Bernardi Dharmawan told Kontan that nine refined sugar factories are to stop operating due to raw sugar shortages. They process raw sugar into refined crystal sugar and sell it to the food and beverage industry. Therefore, Gapmmi and AGRI urge the Trade Ministry to issue an import agreement on raw sugar immediately.