Minister admits anomaly in sales of fertilizer<\/p>\n
JAKARTA (JP): The Ministry of Agriculture admitted yesterday
\nthat malfeasance occurred in the distribution of subsidized
\nfertilizers earmarked for farmers.<\/p>\n
Mohammad Jafar Hafsah, the secretary of the Mass Guidance
\nEngineering Unit (Bimas) of the ministry, said much of the
\nsubsidized fertilizer ended up instead with plantation companies.<\/p>\n
He said the probe was still underway into the amount of
\ngovernment losses caused by the irregularities.<\/p>\n
\"I can't give you the amount of the loss of the subsidy
\nbecause we are still investigating it,\" Jafar said after a
\nhearing with House of Representatives' Commission III for
\nforestry and plantations, agriculture, transmigration and food
\naffairs.<\/p>\n
Bimas, established in 1967, is assigned to develop the food
\ncrops sector.<\/p>\n
The government has subsidized three common fertilizers --
\nurea, ZA and superphospate 36 -- to assist farmers amid soaring
\nprices of fertilizers and to boost the country's rice and food
\ncrop production. Subsidies for other types of fertilizers have
\nbeen abolished gradually since 1990.<\/p>\n
Subsidies are limited to food crops and horticulture farming
\nand are exclusive for farmers.<\/p>\n
Sources at the ministry said many major plantation firms
\nbought the fertilizers at subsidized prices due to dubious
\ndistribution practices and collusion committed by officials of
\nstate fertilizer producer PT Pupuk Sriwijaya and village
\ncooperatives.<\/p>\n
Most of the misconduct occurred in fertilizer distribution at
\nthe regency level and in village cooperatives' warehouses.<\/p>\n
A source said the deviation caused huge losses to the
\ngovernment.<\/p>\n
Jafar said the government would order PT Pusri to distribute
\nfertilizers directly to farmers to ensure transparent
\ndistribution and help farmers.<\/p>\n
Under the new scheme, PT Pusri would distribute a particular
\namount of fertilizer according to orders from farmers.<\/p>\n
\"The move will be taken to cut the distribution chain and to
\nend the unfair practices.\"<\/p>\n
Jafar also said the government would need around Rp 393.9
\nbillion (US$39.4 million) to lower the price of the Kalium
\nChloride (KCl) fertilizer to Rp 1,250 per kilogram.<\/p>\n
He said that the country's consumption of KCl fertilizer
\nreached 315,120 tons this year. The government's subsidy --
\nwhich had been abolished -- is 60 percent of KCl's current price
\nof Rp 2,100 per kilogram.<\/p>\n
Early this month, Minister of Agriculture Soleh Solahuddin
\nannounced the government would reintroduce the subsidy on the
\nfertilizer to boost rice production.<\/p>\n
Reduction of KCl use in rice farming resulted in a downward
\ntrend in the country's volume of production, Soleh said. He
\nattributed the reduction to farmers no longer being able to
\nafford the fertilizer. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/minister-admits-anomaly-in-sales-of-fertilizer-1447893297",
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"sponsor": "Okusi Associates",
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