Credit not subsidy for fertilizers

This refers to Prijono's article in The Jakarta Post on Jan. 27 titled Fertilizer prices and farmers' woes. I have been in Indonesia for seven years and have a few thoughts to offer.

Indonesia is a blessed country as far as soil quality, water availability and land holdings sizes are concerned. Indonesia has advanced technology in many export oriented industries. But it is paradoxical to see that this country imports foodstuff, milk and milk products and even meat.

Fertilizers indeed are critical to farmers. But subsidizing fertilizers is probably not the right answer in hoping for productivity improvement. No doubt, there will be improvements, but in the long term the golden soil of country may become imbalanced.

This has been the experience in India, which despite its food security is facing a soil chemical imbalance problem. So, what is the right approach? This year Indonesia is celebrating the microfinance year. Making fertilizers available to farmers on credit is the key not the subsidy. Free lunches don't really help in the prudent use of resources.

This country is huge and I am sure soil groups and cropping patterns in different areas will be very different hence the need and choice of fertilizers will be different. This brings in the importance of the role of extension programs. I have not heard of anything related to extension programs in Indonesia so far.

Banking institutions and universities or research centers are critical to the sustainable growth of agriculture. Based on agricultural zones, local banks, universities and fertilizer producers must be given the task of improving yield not only increasing consumption of fertilizer.

Banks must put their feet forward in extending finance to farmers and institutions must make sure the right inputs are used in right quantity. Agriculture as a business needs strong logistical support in making inputs available at the right time and this is where well managed and knowledgeable fertilizer producers should come into the picture.

Farmers' incentives can be tied to their payback of loans and thus a higher income earning can go toward mechanization in the next season. Risk mitigation and use of idle assets is critical to harnessing natures immense potential for bringing in development in this field.

I have failed to understand why people here buy imported apples. Is there not even a single island where a few good varieties of apples can be grown. There is a lack of research to find appropriate alternatives. This is true for many other fruits and vegetables.

ASHISH SWARUP, Karawang, West Java