Pusri blamed for fertilizer scarcity<\/p>\n
JAKARTA (JP): Minister of Agriculture Soleh Solahuddin has
\nlaid the blame for a nationwide scarcity of fertilizers on state
\nfertilizer company PT Pupuk Sriwijaya (Pusri).<\/p>\n
Speaking on Friday, Soleh said that PT Pusri had failed to
\nensure that a sufficient supply of urea, ZA, superphospate 36
\n(SP36) and kalium chloride (KCl) fertilizers reached the nation's
\nfarmers.<\/p>\n
\"The company promised the government it would supply farmers
\nwith a sufficient amount of fertilizers during the planting
\nseason from October to November,\" Soleh told a news conference.<\/p>\n
\"Pusri insists that it has produced and distributed the amount
\ntargeted by the government, but in fact farmers in the
\ncountryside are crying out for help,\" he said.<\/p>\n
He noted that Pusri had only distributed 60,000 tons of
\nsubsidized urea to farmers, far below the 160,000 tons the
\ngovernment has paid to subsidize this year.<\/p>\n
Soleh attributed the scarcity to a dubious distribution system
\nand to Pusri officials colluding with village cooperatives to
\nprofit from the wide disparity between the subsidized price and
\nthe market price by selling large amounts of subsidized
\nfertilizer to major plantation firms.<\/p>\n
The subsidized price of urea fertilizer was Rp 450 (6 U.S.
\ncents) per kilogram while the market price was Rp 1,250 per kg.<\/p>\n
He explained that the collusion had resulted in a scarcity of
\nfertilizers among farmers whom the subsidies were intended to
\nhelp.<\/p>\n
\"This unscrupulous practice has forced the government to lift
\nthe huge subsidy on fertilizers and leave the market to determine
\nthe price,\" he said.<\/p>\n
Pusri, which is the country's largest fertilizer producer, is
\nresponsible for the distribution of fertilizers produced by other
\nstate fertilizer companies, including PT Petrokimia Gresik, PT
\nPupuk Kaltim and PT Pupuk Kujang. It also previously held a
\nmonopoly on the import of subsidized fertilizers.<\/p>\n
The financial difficulties currently facing Pusri prompted the
\ngovernment to lift subsidies on fertilizers and remove all
\nrestrictions to their trade on Dec. 1. In theory, all private
\ncompanies are now allowed to import fertilizers and distribute
\nthem to farmers through cooperatives and retailers at the market
\nprice.<\/p>\n
To compensate for the removal of the subsidies, the government
\nhas raised the producer floor price of unhusked rice to between
\nRp 1,400 and Rp 1,500 per kilogram from Rp 1,000 per kilogram,
\nSoleh added.<\/p>\n
The government has also raised the minimum value of subsidized
\nfarming loans to Rp 2 million (US$266.7 million) per hectare from
\nRp 1.49 million, and has lowered interest rates attached to the
\nloans from 14 percent a year to 10.5 percent a year to encourage
\nfarmers to take advantage of the scheme.<\/p>\n
Soleh said the changes were intended to make fertilizers more
\nreadily available to farmers after a period of scarcity.<\/p>\n
\"We are currently cooperating with the Ministry of Finance to
\nfind ways to help importers bring fertilizers into the country.\"<\/p>\n
Soleh said the country was unlikely to reach its rice
\nproduction target of 52 million tons of unhusked rice next year
\nas a direct result of the scarcity of fertilizers.<\/p>\n
\"But it will still be higher that this year's production,\" he
\nadded. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pusri-blamed-for-fertilizer-scarcity-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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