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Indonesia seen becoming world's largest sugar buyer
Publication Date : 27-08-2014
Sugar refiners in Indonesia, set to become the world’s largest buyer, are expected to jack up their importation of raw sugar by 29 per cent next year to meet the rising demand from the domestic food industry.
Raw sugar imports are likely to rise to 3.6 million metric tonnes from 2.8 million tonnes in 2014, said Andre Vincent Wenas, vice chairman of the Indonesian Sugar Refiners Association. The country will replace China as the top importer in the year to April, US Department of Agriculture data show.
Consumption of commodities such as sugar, coffee and palm oil has been climbing in Indonesia, Southeast Asia’s largest economy, given the country's increasing population and incomes.
The rise in Indonesia's importation may help slow down the decline in New York futures, which posted a 57-per cent drop from a three-decade high in 2011 as global harvests outpaced demand.
“The food industry is growing very fast, by at least 8 per cent per year, because of the changes in lifestyle,” Wenas said last week as quoted by Bloomberg.
“Households increasingly prefer to buy processed food and drinks. We see new restaurants, cafes and bakeries appearing and companies are boosting production for the domestic market and for export.”