Cooperatives leave farmers unpaid

SURABAYA: Hundreds of farmers in the East Java regency of Jombang have complained they have not been paid for rice sold to local cooperatives, Antara reported on Monday.

One of the farmers, Munif, said local farmers delivered several tons of rice worth Rp 500 million (US$57,500) about two weeks ago. But the cooperatives had not paid for the delivery, citing delayed disbursement of funds from state bank BRI and the National Logistics Agency (Bulog).

Munif said that normally farmers received payment two days after delivery.

"We won't be able to prepare for the next planting season if we do not receive the money this week," Munif explained.

Farmers and cooperatives have agreed to set the rice price for April delivery at Rp 2,312 per kilogram.

Antara estimated the delayed payment for rice purchases by cooperatives had reached Rp 42 billion across the Jombang regency.