Cashew group calls to monopoly rights

MAUMERE, Flores (JP): The Inter-Island Traders Association has protested the East Nusa Tenggara governor's decision to grant PT Sekar Alam monopoly rights over cashew trading in Sikka district.

The association's district chapter head M. Barono told The Jakarta Post here Saturday that the blunt decision could spark protest as the monopoly would likely reduce cashew prices in the district.

"If cashew prices go down because of the monopoly, farmers would surely become frustrated. And this could lead to social unrest, which could undermine economic and political stability in the whole province," Barono warned.

He called on Governor Herman Musakabe to withdraw his decree which appointed PT Sekar Alam as the only cashew trader in Sikka district and allow the existing traders to operate.

In a decree, dated July 31, Musakabe ordered Sikka district head Alex Idong to facilitate PT Sekar Alam as the only cashew trader in the district to ensure cashew supply for its cashew processing plant.

The governor also told the district head to direct the existing cashew traders to trade other commodities.

Barono said the current free trading on cashews has been running well, with village cooperatives the main players.

The planned cashew trading monopoly would likely destroy the current pricing system, which has been accepted by farmers, Barono said.

He warned that people were already enraged by the clove monopoly, which had forced them to cut down their clove trees and replace them with other hard-crop plantations, including cashew trees.

"That policy would only inflict losses to farmers. I'm afraid farmers would again cut down their cashew trees like what they did with their clove trees," Barono said.

Last year, the government launched a massive clove conversion program, cutting down clove trees and replacing them with other crops to reduce clove oversupply.

But earlier last month, the government halted the clove conversion program because of increasing demand.

Clove trading has been monopolized by the Stock Management Agency, chaired by President Soeharto's youngest son Hutomo Mandala Putra, since 1991.

Barono said cashew traders' objection to the planned monopoly had been presented to the Sikka district head and the governor through letters.

Sikka district head Alex Idong said Saturday he had listened to cashew traders' concerns and would pass them on to the governor. (yac/rid)