Distribution system of fertilizer may change<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Agriculture will propose to the Ministry of
\nIndustry and Trade that the current fertilizer distribution
\nsystem be revised to help prevent future supply shortages, a
\nsenior official said.<\/p>\n
Director General of Agriculture Facility Ato Suprapto told The
\nJakarta Post on Wednesday that under the existing distribution
\nsystem, introduced by the Ministry of Industry and Trade in 1993,
\nfertilizer distributors in Java could only maintain a one-week
\nsupply of fertilizer.<\/p>\n
He explained that since the intensity of farming activities
\ndiffered from area to area, certain places might sometimes suffer
\nfertilizer shortages due to a surge in demand. This forced
\ndistributors to \"import\" it from other areas, which in turn
\npushed up the price of the product, particularly when
\ntransportation was becoming more expensive due to higher fuel
\nprices.<\/p>\n
Ato said that ideally, distributors should be allowed to
\nmaintain a one-month supply to better manage the supply of the
\ncommodity, but added that this would force distributors to spend
\nmore money on storage.<\/p>\n
He said that given the high storage costs, his office would
\npropose a two-week supply system.<\/p>\n
He added that his office would also ask the Ministry of
\nFinance to provide a subsidy scheme to help distributors cover
\nstorage costs.<\/p>\n
\"We will meet with the Ministry of Industry and Trade next
\nweek to discuss the revision of the distribution system,\" he
\nsaid.<\/p>\n
The comments follow a report in Kompas daily that there had
\nbeen a shortage of fertilizer in some places in Java, which had
\nforced up the price of the commodity.<\/p>\n
But Ato said that domestic fertilizer output at 6.5 million
\ntons was more than enough to cover the around 4.5 million ton
\ndemand.<\/p>\n
He said that the problem was only in the distribution system.<\/p>\n
Ato said that according to reports from his officials, there
\nwas no shortage of fertilizer in West Java's rice production
\ncenters -- including in the areas of Karawang, Subang and
\nPurwakarta -- and that the price of the commodity remained at the
\nnormal level of about Rp 1,200 per kilogram.<\/p>\n
He said that only in Cianjur was there a supply problem, with
\nprices rising to between Rp 1,300 and Rp 1,400 per kg.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/distribution-system-of-fertilizer-may-change-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}