Clove farmers could face problems selling products<\/p>\n
JAKARTA (JP): Clove farmers will likely face difficulties in
\nselling their produce this year because village cooperatives,
\nwhich have been appointed by the government as collectors, may
\nnot be able to buy all their output.<\/p>\n
The Association of Village Cooperatives Units (Inkud) told the
\nHouse of Representatives (DPR) here yesterday that its members
\nhave procured only 7,000 tons of clove during the first six
\nmonths of this year, as compared to the planned procurement of
\n80,000 tons for all of 1994.<\/p>\n
Inkud's board of directors said in a hearing with Commission
\nVII of the House that the clove procured by its members in the
\npast six months consisted of 1,276 tons of high quality clove and
\n6,000 tons of low quality clove.<\/p>\n
\"The Clove Stock Management Company (BPPC) has allocated a
\nfund of Rp 450 billion (US$208 million) to purchase 100,000 tons
\nof clove this year,\" Inkud's chairman, M. Rapi'i, said, adding
\nthat Inkud itself plans to buy around 80,000 tons of clove this
\nyear.<\/p>\n
In 1990, the government appointed BPPC as the sole clove
\nmarketing and buffer-stocking agency to stabilize prices on the
\ndomestic market and improve the living standards of growers.<\/p>\n
Last year, BPPC delegated all of its operational and
\nadministrative responsibilities for the procurement and buffer-
\nstocking to Inkud, but it remains responsible for the financial
\nand marketing aspects.<\/p>\n
Decrease<\/p>\n
Inkud reported yesterday that clove procurement sharply
\ndecreased from 142,145 tons in 1992 to 53,864 tons in 1993.<\/p>\n
According to the data from the National Logistics Agency
\n(Bulog), the annual domestic clove production is estimated at
\n135,000 tons, while demand is only 100,000 tons.<\/p>\n
\"The procurement rate during the past three years was around
\n105,000 tons while its sales were 65,000 tons per year,\"
\nRapi'i said.<\/p>\n
The difference in the supply and demand leads to a surplus of
\n173,932 tons.<\/p>\n
This surplus has caused a problem because farmers should save
\nRp 2,900 ($1.34), consisting of Rp 1,900 in compulsory savings
\nand Rp 1,000 in equity funds, at village cooperatives (KUD) every
\ntime they sell a kilogram of clove.<\/p>\n
\"Up until June, total equity funds had reached Rp 486.54
\nbillion and compulsory savings Rp 253.16 billion,\" said Jeff
\nMustafa, a director of Inkud.<\/p>\n
The government has promised that farmers could withdraw those
\nfunds after the cooperatives sell all their stock.<\/p>\n
An executive of Inkud's East Java office said the government
\nshould give additional aid to the cooperatives so that the
\nfarmers can withdraw their savings.<\/p>\n
For the next two years, Inkud will likely buy only around
\n80,000 to 90,000 tons of clove annually, so that the stocks can
\nbe reduced. (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/clove-farmers-could-face-problems-selling-products-1447893297",
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