Indonesia’s Bulog to build 300,000 tonnes white sugar buffer stock
Indonesia's Bulog has been given government approval to build a 300,000 tonnes buffer stock of white sugar, the state food procurement body's CEO said today, in an effort to guard against future food inflation.
"The government has in principle approved Bulog's proposal to form a sugar buffer stock of 300,000 tonnes," Sutarto Alimoeso told Reuters.
Earlier this week, Indonesia's agriculture minister forecast white sugar consumption to be little changed at 2.6 million tonnes next year. White sugar production this year is seen at 2.54 million tonnes.
After global food prices spiked last year, the Indonesian government agreed to extend Bulog's role beyond rice in order to build bigger food stockpiles.
Bulog can import food staples but often prioritises buying from domestic farmers. - Reuters, December 18, 2013.