Jakarta (ANTARA) - The Indonesian Cassava Community (MSI) has stated\nthat the government\u2019s policy to halt cassava imports is boosting prices\nat the farmer level while simultaneously opening new market\nopportunities through the development of the bioethanol industry.<\/p>\n
MSI General Chairman Arifin Lambaga said the policy is beginning to\nstrengthen the domestic cassava market, with prices in several\nproduction centres now reaching around Rp2,400 per kilogram, while also\nopening new markets for farmers through the bioethanol industry.<\/p>\n
\u201cAlhamdulillah, especially in Lampung, which is one of the cassava\nproduction centres, the price is already good, around Rp2,400 per\nkilogram. We thank the Minister and the President for their support and\nseveral policies, such as stopping cassava imports,\u201d said Arifin\nfollowing an audience with the Minister of Agriculture, Andi Amran\nSulaiman, in Jakarta on Wednesday.<\/p>\n
The policy is considered to have a positive impact on cassava\nfarmers. According to him, the reduction in import supply is making more\ndomestic market space available for local farmers\u2019 production.<\/p>\n
Arifin noted that the strengthening of the domestic market needs to\nbe accompanied by a gradual increase in production. This is crucial\ngiven that cassava demand is likely to rise alongside the development of\nthe national bioethanol industry.<\/p>\n
According to Arrol, the Minister of Agriculture\u2019s push for bioethanol\ndevelopment could create a large-scale new market for the cassava\ncommodity. The increasing demand for raw materials will provide\nopportunities for farmers to expand production and increase the economic\nvalue of cassava.<\/p>\n
\u201cThis is a massive need. This is a very large market for us,\u201d he\nsaid.<\/p>\n
Consequently, Arifin expressed readiness to support the government\u2019s\nprogramme towards E20. The association has also coordinated with cassava\nstakeholders in various regions to prepare the raw material supply.<\/p>\n
\u201cWe are 100 per cent ready to support the E50 programme. The\nimportant thing is the availability of materials,\u201d Arifin\nemphasised.<\/p>\n
To support this raw material requirement, MSI stated its readiness to\nparticipate in the development of approximately 500,000 hectares of\ncassava land.<\/p>\n
However, Arifin noted that large-scale development requires the\nstrengthening of the upstream sector, particularly the provision of\nsuperior seeds, fertilisers, agricultural tools and machinery, as well\nas financing schemes.<\/p>\n
Seed requirements are a primary concern. Arifin explained that one\nhectare of land requires approximately 8,000 to 10,000 cuttings.\nTherefore, developing hundreds of thousands of hectares requires the\nprovision of seeds in very large quantities.<\/p>\n
\u201cThe seeds must be superior varieties that can produce high\nproductivity and good starch content. This is because processing for\nbioethanol depends on the starch content,\u201d he said.<\/p>\n
On the industrial side, MSI is also communicating with several\ninvestors interested in developing cassava processing into\nbioethanol.<\/p>\n
\u201cWe have made several contacts with investors, particularly in\ncassava processing for bioethanol. Some investors are already prepared,\u201d\nhe said.<\/p>\n
According to Arifin, market certainty or the presence of off-takers\nis a crucial factor for bioethanol investment to be realised promptly.\nMarket certainty is also needed to ensure that the increase in farmers\u2019\nproduction is absorbed by the industry.<\/p>\n
MSI proposes that the development of the bioethanol industry be\ncarried out gradually and integrated with cassava production centres.\nOne scheme being prepared is the core-plasma partnership model, allowing\nfarmers to be directly involved as raw material suppliers.<\/p>\n
Arifin believes that bioethanol development can be a vital part of\nnational cassava downstreaming. In addition to opening new markets, the\nindustry has the potential to increase the added value of the commodity\nwhile expanding farmer involvement in the energy industry supply\nchain.<\/p>\n
MSI hopes that the synergy between the government, farmers,\nassociations, investors, and industry will continue to be strengthened.\nThus, import control policies can run in tandem with increased domestic\nproduction and the opening of new markets through bioethanol.<\/p>\n
Previously, the Ministry of Agriculture had set the price of cassava\nat Rp1,350 per kilogram.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/msi-stop-cassava-imports-to-boost-prices-and-open-bioethanol-market-1790189536", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }