RI to apply corn imports duties<\/p>\n
Dow Jones, Jakarta<\/p>\n
The Indonesian government plans to apply flexible import
\nduties on corn in 2007 to stabilize domestic prices, said an
\nofficial on Tuesday.<\/p>\n
A 5 percent-10 percent import duty will be applied outside the
\nmain harvest season, while a maximum 30 percent import duty will
\nbe applied during the main harvest season, when corn supply is
\nabundant, said Maxdeyul Sola, director of cereal products at the
\nMinistry of Agriculture.<\/p>\n
Corn is currently subject to a 5 percent import duty.<\/p>\n
"It's a mechanism to protect farmers during the main harvest
\nseason so that domestic prices won't fall," Sola told reporters.<\/p>\n
Stable domestic prices will entice farmers to keep planting
\ncorn, he added.<\/p>\n
The main corn harvest normally runs from February to March.<\/p>\n
Sola said the government plans to implement the new import
\nduties in 2007 because the country is expected to achieve self-
\nsufficiency in corn production then.<\/p>\n
The Ministry of Agriculture forecast corn output at 12.86
\nmillion tons in 2007, while consumption is expected to reach
\n12.52 million tons in the same year.<\/p>\n
This year, corn output is estimated at 11.74 million tons,
\nfrom 11.23 million tons in 2004, amid rising yields and higher
\nacreage, according to the Central Statistic Bureau.<\/p>\n
Corn is the second food source after rice for many Indonesians
\nand an important raw material for livestock feed. Higher corn
\noutput will reduce the country's dependence on imports.<\/p>\n
The government expects corn output to grow by 4.26 percent
\nannually between 2005-2025 through several means, including
\nimprovements in infrastructure and providing agricultural
\nmachinery, to achieve its target to become a major corn producer.<\/p>",
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"sponsor": "Okusi Associates",
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