PTPN TO MARKET 10,00O TONS OF SUGAR IN EAST JAVA

Surabaya, E Java, June 18 (ANTARA) - A total of 10,000 tons of sugar, produced by state-owned plantation firm PTPN XI, will soon be released to the market through state logistics agency Bulog, in order to increase stocks in the market, an official said.

PTPN XI Corporate Secretary Adig Suwandi said here on Wednesday that the sugar, which was milled in 2009, would be sold in the market at a price of Rp7,323 to Rp7,353 per kg.

"We will release the sugar stocks to the market in an effort to respond to complaint about shortage of sugar stocks in the market that has relatively driven up sugar prices," he said.

Besides by PTPN XI, the distribution to the market of sugar was also done by other state-owned plantation firms, namely PTPN II, VII, IX, X, XIV and PT Rajawali Nusantara Indonesia (RNI), he said.

These companies have agreed on a price based on the latest price auction on the farmers' sugar production.

"This decision is taken to help maintain the price of sugar at the farmers' level to remain beneficial for them so that they would continue to be motivated in planting sugar canes," Suwandi said.

He said that at the latest tender offer held on June 12, 2009, the price of farmers' sugar was set at Rp7,323 per kg for sugar produced in the Pasuruan area (East Java), and Rp7,353 per kg for sugar produced in Madiun district (E Java).

According to plan, a total of 18,000 tons of sugar produced by state-owned plantation companies will also be distributed through Bulog. "We hope with the gradual release of stocks, price would return to normal," he said.

The price of sugar in the market in recent days has risen to Rp8,000 per kg as a result of shortage of stocks.

In the meantime, Bulog chief for East Java, Sutono said this year Bulog would allocate 160,000 tons of sugar for East Java. It increased from 73,000 tons in 2008.

On the national scale, Bulog plans to distribute 670,000 tons of sugar to the market this year.