Government bans export of urea fertilizer<\/p>\n
JAKARTA (JP): The government has banned the export of urea to
\nprevent a shortage of the fertilizer at home, especially with the
\nstart of the planting season in October.<\/p>\n
The director general of chemical, farm and forest products at
\nthe Ministry of Industry and Trade, Gatot Ibnu Santoso, said on
\nWednesday that the ban was imposed to prevent a scarcity of the
\nfertilizer in the domestic market.<\/p>\n
He said the fertilizer supply had sharply declined lately due
\nto damage occurring in the production units of PT Pupuk Sriwijaya
\n(Pusri) and PT Petro Kimia Gresik, which are the country's major
\nurea producers.<\/p>\n
"We have to save up (for October) because the Pusri and Petro
\nKimia Gresik factories are not producing normally," he told
\nBisnis Indonesia.<\/p>\n
Gatot said urea production at Pusri had declined by 200,000
\ntons since damage occurred in its production units recently.<\/p>\n
Total production capacity of urea in the country is 6.8
\nmillion tons a year.<\/p>\n
In 1999, exports reached 2.29 million tons, and during the
\nperiod of January 2000 to March 2000, it reached 457,000 tons.<\/p>\n
The price of the fertilizer has risen sharply to over Rp 1,250
\nper kilogram from less than Rp 500 per kilogram last year. The
\nsharp increase in the cost of urea has severely hurt farmers, who
\nmostly rely on it for crop cultivation.<\/p>\n
The government has lowered the price of natural gas sold to
\nfertilizer producers in a bid to lower the price of urea.<\/p>\n
But Minister of Agriculture M. Prakosa said on Thursday that
\nthe measure could not guarantee a drop in the price of urea.<\/p>\n
Gatot said gas prices for the fertilizer industry were cut by
\n25 percent to US$1.20 per million British thermal unit (MMBTU).
\n(10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-bans-export-of-urea-fertilizer-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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