Fertilizer subsidies likely to be reduced despite drought<\/p>\n
JAKARTA (JP): The government will likely continue its policy
\nof gradually reducing fertilizer subsidies despite the protracted
\ndrought, Minister of Agriculture Syarifuddin Baharsyah says.<\/p>\n
"Although the final decision will come out after a limited
\ncabinet meeting in October, I can say that most likely we will
\ncontinue on the track of subsidy reduction," Syarifuddin told
\nreporters during a break in a hearing with Commission IV of the
\nHouse of Representatives (DPR) yesterday.<\/p>\n
Fertilizer subsidies, formerly the largest agricultural
\nsubsidies due to its vital role in rice production, have been
\ngradually phased out since 1989 as part of the government's
\neffort to make the economy more efficient.<\/p>\n
Rice is the main staple of more than 90 percent of Indonesia's
\npopulation of 189 billion.<\/p>\n
Syarifuddin also told the commission, which deals with
\nagriculture and forestry affairs, that the government will focus
\non expanding rice fields to secure adequate supplies of the
\nstaple.<\/p>\n
"In South Sulawesi, there are now an additional 40,000
\nhectares of rice fields," he said, citing an example.<\/p>\n
The minister also stated that the government has appealed to
\nfarmers to use water from the existing irrigation schemes more
\nefficiently, reminding that in Indonesia, the efficiency rate of
\nirrigation use is only about 50 percent.<\/p>\n
Damaged<\/p>\n
According to the Ministry of Agriculture, the current drought
\nhas affected about 843,000 hectares of rice fields, of which
\n150,000 hectares have been completely damaged.<\/p>\n
This indicates that the damaged areas have increased by 39,000
\nhectares since Director General of Food Crops and Horticulture
\nAmrin Kahar said last month that the drought had damaged 111,000
\nhectares of rice fields.<\/p>\n
Kahar also said that the drought might slash four percent off
\nlast year's production level of 48.1 million tons.<\/p>\n
The official weather agency said on Monday that the rainy
\nseason is coming late this year for many parts of Indonesia,
\nincluding West and East Java, which are regarded as Indonesia's
\n"rice bowl" areas.<\/p>\n
The dry season usually lasts from April through September.<\/p>\n
Vietnam<\/p>\n
Food Minister Ibrahim Hasan, who also chairs the State
\nLogistics Board (Bulog), announced recently that the government's
\nrice stocks of 1.1 million tons are "sufficient to feed the
\nnation for seven months."<\/p>\n
He also said that Bulog will receive shipments of some 100,000
\ntons of rice from Vietnam and Thailand as "repayments of
\nIndonesia's rice loans."<\/p>\n
However, a news report from Vietnam last week stated that
\nHanoi was selling 265,000 tons of rice in the next two months to
\nJakarta at about US$200 to $220 per ton.<\/p>\n
Last week, two shipments totaling 15,200 tons of rice arrived
\nin Jakarta from Vietnam and Thailand.<\/p>\n
It is still not clear whether these rice were "loan payments"
\nor imports.(hdj)<\/p>",
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