RI aims to become self-sufficient in sugar production by 2007<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The government plans to boost the productivity of sugar fields
\nin the main sugar plantation area of Java as part of efforts to
\nachieve self-sufficiency, Minister of Agriculture Bungaran
\nSaragih said.<\/p>\n
He said that under the plan, productivity was projected to
\nnearly double to 8 million tons per hectare by 2007, from last
\nyear's 4.5 million tons per hectare.<\/p>\n
This would boost the country's sugar output to 3 million tons
\nin 2007, compared to this year's target of 2 million tons.<\/p>\n
\"Boosting productivity is necessary if the country is to
\nbecome self-sufficient in sugar output. We need four years to
\nmeet the target,\" Bungaran told The Jakarta Post over the
\nweekend.<\/p>\n
The country's sugar output has been on the decline, as many
\nfarmers have shifted to other crops due to the low domestic price
\nof the commodity. The country is now one of the world's largest
\nimporters, importing some 1.6 million tons last year mainly from
\nThailand to meet demands. Sugar is considered as a strategic
\ncommodity in the country.<\/p>\n
Bungaran said that the government was preparing measures to
\nboost the productivity of sugar farmers, thus allowing them to
\ncompete with more efficient farmers in other the countries who
\nare flooding the local market with cheaper products.<\/p>\n
He said that among the productivity-boosting measures were
\nintroducing high-quality seeds, improving the irrigation system
\nand providing increased subsidized-credit facilities for the
\nfarmers.<\/p>\n
He said that the government had allocated some Rp 1 trillion
\n(US$112 million) for loans to farmers this year, much higher than
\nlast year's Rp 600 million.<\/p>\n
The government would also spend some Rp 68 billion to purchase
\nquality sugarcane seeds this year. The seeds will be distributed
\nby state plantation firms to the farmers, he said.<\/p>\n
Bungaran said that production cost of the sugarcane farmers
\nwould eventually fall to Rp 2,000 per kilogram, less than the
\ninternational average level of around Rp 2,300 per kg.<\/p>\n
Today, farmers' production cost is between Rp 3,000 to Rp
\n3,200 per kg.<\/p>\n
The Ministry of Agriculture is also planning to open some
\n35,000 hectares of sugarcane fields outside Java over the next
\nfour years in a bid to boost output.<\/p>\n
The country's sugarcane plantations currently cover some
\n350,000 hectares of land in Indonesia, mainly on Java.<\/p>\n
Bungaran, however, said that the production-boosting plan must
\nbe accompanied by a policy to protect local farmers against
\ncheaper imported sugar products and to curb illegal imports.<\/p>\n
He feared that without such measures, farmers would not be
\ninterested to continue sugarcane farming.<\/p>\n
\"We still need to protect our farmers at least until 2007 by
\nimposing high import tariffs or maintaining the current import
\nregime of the commodity,\" he said<\/p>\n
Minister of Industry and Trade Rini M. Soewandi introduced a
\npolicy last year limiting the number of importers to several
\nstate-owned plantation companies from previously 800 importers to
\nhelp avoid oversupply, which would hurt local farmers.<\/p>\n
But this policy has been criticized by some as it was seen as
\ncontributing to the recent surge in the price of sugar. Analysts
\nsuggested the government should instead impose a tariff system.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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