Farmers in limbo over falling price<\/p>\n
Oyos Saroso H.N., The Jakarta Post, Gunungsugih, Central Lampung<\/p>\n
Farmers in Lampung are clamoring for a higher base price for
\nunhusked rice to compensate for the soaring price of fertilizer.<\/p>\n
The price of rice now ranges from between Rp 1,025 (U.S. 11
\ncents) and Rp 1,100 per kilogram in the districts of Gunungsugih,
\nBandarjaya and Seputih Rahman, Central Lampung and local farmers
\nare in a quandary whether or not to carry on their loss-making
\nfarm business.<\/p>\n
Subawa, 40, chairman of Central Lampung's Sri Munggah Farmers
\nGroup, recently confirmed the unfavorable situation. He pointed
\nout that, excluding labor costs, the cost of fertilizer and other
\nmaterials had doubled, so the government price should at least be
\nat the same level.<\/p>\n
In areas with transportation difficulties, like Rawajitu in
\nTanggamus regency, farmers had to sell their unhusked rice at
\nonly Rp 850 per kilogram, compared to the previous price of
\nbetween Rp 1,400 and Rp 1,500 per kilogram.<\/p>\n
Although this year's harvests have been sporadic and not
\nbumper yields, a lot of farmers have found it hard to make ends
\nmeet. Riswandi, 51, a Bandarjaya farmer, claimed to be unable to
\nmanage his field and to have barely enough money for his
\nchildren's education, Sarkam from Palas, South Lampung, could no
\nlonger afford to support his family properly.<\/p>\n
Ramli, 31, a Trimurjo farmer in Central Lampung, said he spent
\nRp 2 million on seedlings, fertilizers and processing costs per
\nhectare, which produced only five tons of wet unhusked rice with
\na gross profit of just Rp 3 million, which was meant to support
\nhim and his family for three months.<\/p>\n
Ramli admitted he had no more money to grow paddy in the
\ncoming season because he would need at least four quintals of
\nfertilizers worth Rp 430,000 and would have to pay handtractor
\noperation fees as high as Rp 250,000 per hectare and buy more
\nseedlings.<\/p>\n
The unhusked rice price crash in Lampung's paddy production
\ncenters is inseparable from actions taken by the local middlemen,
\nwho monopolize the trade at the expense of the provincial
\nlogistics depot.<\/p>\n
This group prevents external wholesale traders from contacting
\nfarmers directly and threatens not to buy from farmers who sell
\ntheir products to other parties.<\/p>\n
Suroto, 40, a rice mill owner in Abipura village, Trimurjo,
\nalso has to buy between three and four tons of unhusked rice
\nevery day from the mafia at Rp 1,100 per kilogram. Other buyers
\nfrom Palembang, South Sumatra, and Bengkulu have to face the same
\ngroup of local middlemen.<\/p>\n
Meanwhile, Achmad Suryatna, head of the agriculture ministry's
\nfood resilience agency, indicated the government was preparing to
\nadvance Rp 170 billion to anticipate a further price plunge in
\nthe bumper harvest season of 2003, which has been approved by the
\nHouse of Representatives.<\/p>\n
The fund will be allocated to rice-growing regions in
\nIndonesia through local administrations to finance the purchase
\nof rice by cooperatives or rice mills from farmers at a
\ngovernment fixed price.<\/p>\n
He said the average price of unhusked rice during the January
\nto June period, as shown by the Central Board of Statistics, was
\nRp 1,519 per kilogram, still higher than the official floor
\nprice, though he admitted in some areas the price was lower due
\nto off-season harvests.<\/p>\n
A central government team is evaluating the present floor
\nprice, while the domestic price has also been maintained by
\nimposing rice import duties.<\/p>",
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"sponsor": "Okusi Associates",
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