Govt to cut back fertilizer subsidy next fiscal year<\/p>\n
JAKARTA (JP): The government has decided to cut back
\nfertilizer subsidies by Rp 6 billion (US$ 2.62 million) to Rp 137
\nbillion in the 1996\/97 fiscal year, despite the commodity's
\nsoaring price on the domestic market over the last couple of
\nmonths.<\/p>\n
Minister of Agriculture Sjarifudin Baharsjah announced the
\ngovernment's decision at a meeting with members of the House of
\nRepresentatives' Commission IV, which oversees agriculture and
\nforestry affairs, yesterday.<\/p>\n
He emphasized that the cutback on subsidies does not mean that
\nthe government will raise fertilizer prices.<\/p>\n
\"So far, the government has not stipulated any new price for
\nfertilizers,\" Sjarifudin said, adding that the government would
\ntake steps to lower prices in the market places.<\/p>\n
To prevent price hikes, he said, his office would act in
\nconjunction with the Ministry of Industry and Trade, the Ministry
\nof Cooperatives and Small Enterprises and state-owned fertilizer
\nproducer PT Pupuk Sriwijaya to optimize the distribution of
\nfertilizers to village cooperatives and other users.<\/p>\n
Sjarifudin said the government would also require Pupuk
\nSriwijaya to keep one month's supply of fertilizer stockpiled at
\nits storehouses.<\/p>\n
Pupuk Sriwijaya is currently required by the Ministry of
\nIndustry and Trade to have extra stocks for two weeks only.<\/p>\n
Sjarifudin said large amounts of urea fertilizer would also be
\nused to restore plantation areas hit severely by the 1994 drought
\nand to carry out the government's special farm-intensification
\nprograms.<\/p>\n
For the 1996\/1997 fiscal year, the government estimates that
\n5.9 million tons of fertilizer will be needed. This amount will
\nconsist of 3.5 million tons of urea, 1.2 tons of superphosphate-
\n36 (SP-36), 607,910 tons of ZA and 581,010 tons of KCL.<\/p>\n
The media have been reporting nationwide fertilizer shortages
\nfor the last couple of months.<\/p>\n
Several analysts said that the lack of granular urea might be
\ncaused by distribution problems, while others said it was due to
\nefforts to intensify the use of new, tablet-type urea, which
\nfarmers actually find harder to apply.<\/p>\n
Meat<\/p>\n
Meanwhile, in response to recent reports on the importation of
\nmeat, Sjarifudin said yesterday the imports could have been made
\nto anticipate the upcoming Idul Fitri holiday next month.<\/p>\n
Director General of Animal Husbandry Soehadji told reporters
\nthat meat imports were permitted as long as they were not used to
\nsupply public markets.<\/p>\n
\"Supplies from traditional farms managed by farmers will
\ncontinue to be the backbone of our public meat market, supplying
\nup to 78 percent of demand,\" he said.<\/p>\n
Some 16 percent would come from the larger-scale fattening
\nfarms, where cattle are raised, and the remaining six percent
\nfrom imports.<\/p>\n
He said Indonesia's meat consumption for the upcoming fiscal
\nyear is expected to reach 451,000 tons, but domestic farms'
\ncurrent capacity is only 352,000 tons. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-cut-back-fertilizer-subsidy-next-fiscal-year-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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