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.
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.