Corn self-sufficiency may cost US$81.89m<\/p>\n
JAKARTA (JP): The government's target of reaching national
\nself-sufficiency in corn will require the intensive development
\nof 456,150 hectares of hybrid-corn fields, costing Rp 188.34
\nbillion (US$81.89 million) in farmers' credit funds.<\/p>\n
According to a report issued yesterday by the Ministry of
\nagriculture, the government also plans to develop 50,000 hectares
\nof composite-corn fields, costing Rp 3.37 billion in funds
\nallocated by banks and state-owned firms for small-scale
\nbusinesses.<\/p>\n
The report said that corn has become an increasingly important
\ncommodity in the last few years, both as a foodstuff and as a raw
\nmaterial for poultry feed.<\/p>\n
Demand for corn has increased sharply from 1.28 million tons
\nin 1990 to an expected 3.51 million tons for this year.<\/p>\n
The report estimated that the demand will further increase to
\n3.81 million tons in 1997 and 4.08 million tons in 1998.<\/p>\n
To offset shortages in domestic production, Indonesia has had
\nto import large amounts of the crop. The figure has risen sharply
\nfrom 1.12 million tons in 1994 to 1.3 million tons in 1995.<\/p>\n
\"The imports have not only reduced the country's earnings...
\nthey may also have an impact on the country's food security and
\neconomic stability,\" the report said.<\/p>\n
Corn prices on the international market have continued to
\nincrease from $109 per ton in 1990 to $169 this year.<\/p>\n
The government's intensification plan for corn was planned in
\nthe 1995\/1996 fiscal year in an effort to cut back on the huge
\nimports.<\/p>\n
However, the report said, the planned one million hectares of
\nhybrid-corn fields in 11 provinces failed to contribute
\nsignificantly to the country's corn production.<\/p>\n
\"The government, for the 1996\/1997 fiscal year, plans to open
\nup another one million hectares of hybrid-corn fields in 13
\nprovinces... But to make this project succeed by at least 75
\npercent, extra efforts must be made,\" the report read.<\/p>\n
The government is also likely to impose a floor price on corn
\nto keep prices up during harvesting periods (January-April) and
\nencourage farmers to continue planting corn.<\/p>\n
Up to 1990, the government set the corn floor price at Rp 155
\nper kilogram, while the National Logistics Agency bought corn
\nfrom village cooperatives at Rp 165 per kg. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/corn-self-sufficiency-may-cost-us8189m-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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