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In order to cope with imports of cheap rice in residue, apart from raising import duty, the government should set limit to number of destination regions and set time limit for imports, HKTI said.
HKTI said in addition to import duty, in order to prevent imports of cheap rice in residue, the government should also set limit to import volume, allow only certain regions to import rice, and set limit for import period.
Recently, HKTI urged the government to again raise the import duty on rice with a threat it would call for nationwide protest by farmers if the government refused to hear its demand.
HKTI said a higher import duty is necessary ahead of grand harvest in March/April.
According to the Government, imposing high duties on sugar imports as proposed by the Indonesian Farmers' Association (HKTI) and by the Indonesian Sugar Association (AGI) would result in the price of sugar on the domestic market soaring to a level unaffordable to the people.
However, the decision is evaluated by HKTI as one which does not encourage the sugar market to move in the direction of a healthier mechanism and which can even create distortions on the sugar market.
As for the import mechanism, AGI and HKTI are urging, the Government to review is.
Besides proposing the imposition of an import duty on sugar, HKTI has also proposed that the Government increase the price of sugar purchased by sugar mills from farmers from Rp 2,500 per kilogram to Rp 3,500.
If the Government insists on its policy on not imposing any import duties on sugar, HKTI and AGI are worried that more sugar mills will have to close down.
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