Just as the world's top sugar traders foreast a global shortage of the commodity, No. 1 raw-sugar importer Indonesia says it wants a record amount of the sweet stuff.
The Southeast Asian nation said it aims to import about 1.4 million tons of raw sugar, or 1.33 million tons of the refined variety, for household use this year and in early 2021. That's a more than 11-fold increase on last year. Meanwhile, domestic output is expected to sink while local demand increases.
The imports for households are on top of 3.25 million tons in forecast purchases this year to supply industrial users. The U.S. Department of Agriculture estimates the country will buy 4.5 million tons of raw sugar in 2019-2020.
"Ideally we must have at least 1.3 million tons of stockpiles in early 2021," Yadi Yusriyadi, senior adviser at the Indonesian Sugar Association, told reporters in Jakarta on Wednesday. "If there's no additional supply through imports while demand keeps increasing, prices will definitely continue to rise."