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Indonesia: ‘Sugar samurai’ known to have heavy hand in market manipulation

By  |  March 25, 2013

Despite fruitful supplies of sugar around the globe, a small group of traders known as the ‘sugar samurai’ in Indonesia have been called out by government officials and other traders for driving sugar prices in the nation to an all-time high last summer, as the country braces for even more price spikes. Reports say the traders buy sugar crops through a technique that works in their favor, though the officials note there is no evidence of illegal practices. But those who are calling out the group say that in addition to favorable auctions, the traders also control “most” of the country’s distribution and retail networks, thus giving nearly total control of the market to just a small group. One economist told reporters that the lack of competition is responsible for the price hikes; reports say that prices are also fixed by the government to have a floor auction price in an effort to ensure farmers do not switch crops.

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