Credit not subsidy for fertilizers

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