Clove farmers demand Rp 200b fund<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
North Sulawesi clove growing representatives demanded on
\nMonday that the government provide money to compensate for a
\npotential loss from the plunge in the commodity price ahead of
\nthe harvest season.<\/p>\n
North Sulawesi clove farmers solidarity forum vice chairman
\nErnest Weley said that Rp 200 billion (US$24 million) in
\ninterest-free loans would be adequate to cope with declining
\nclove prices.<\/p>\n
\"Farmers in North Sulawesi are in dire need of funds to
\nprepare themselves for the coming harvest period because they are
\nalready short of money,\" he told reporters after a hearing with
\nthe House of Representatives' Commission V for trade and
\nindustry.<\/p>\n
He said the funds would be allocated to pay laborers, to buy
\nnew machines and to finance storage of the commodity.<\/p>\n
Clove growers in North Sulawesi -- who account for 70 percent
\nof the population in the province -- are facing a severe blow
\nfrom the drop of the commodity price.<\/p>\n
Currently the price stands at Rp 12,000 per kilogram and is
\nstill declining. In comparison, the price peaked at Rp 85,000 per
\nkilogram in mid-2001.<\/p>\n
North Sulawesi produces around 15,000 tons of cloves per
\nannum, or 25 percent of the total national production of around
\n60,000 tons. Currently, the domestic demand for cloves -- mainly
\nfrom cigarette manufacturers -- reaches 110,000 tons per year.<\/p>\n
Ernest said that as the domestic market was still short of
\nsupply, it did not make any sense that the price had dropped to
\nits current levels.<\/p>\n
\"We suspect that there are certain parties who have illegally
\nimported cloves to close the gap between the demand and supply in
\nthe domestic market,\" he said, adding that imports of the
\ncommodity had been banned by a decree from the minister of trade
\nand industry last year.<\/p>\n
He also suspected that major cigarette manufacturers had used
\nunfair practices by purchasing the cloves directly from farmers
\nwhile the crops were still half-grown.<\/p>\n
\"To supply their own needs, cigarette manufacturers also grow
\nthe commodity on their own plantations. It has also contributed
\nto the price decline,\" Ernest said.<\/p>\n
He said farmers' welfare in Indonesia's northernmost province
\ncould further deteriorate in the wake of the harvest period, when
\nthere would be an abundant supply of cloves. He said the price
\ncould fall to Rp 10,000 per kilogram.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/clove-farmers-demand-rp-200b-fund-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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