Indonesian Political, Business & Finance News

Farmers' livelihoods under threat from low salt prices

| Source: JP

Farmers' livelihoods under threat from low salt prices

Nana Rukmana, The Jakarta Post, Cirebon

The traditional salt industry along the north coast of Cirebon
regency, West Java, is in urgent need of modernization to help
improve the quality of salt and the welfare of more than 32,000
salt farmers in the regency.

The farmers have complained that falling market prices of
locally produced salt was affecting their livelihoods, leaving
them unable to pay for their daily needs.

M. Insyaf Supriadi, chairman of a salt farmer's group in
Cirebon, said at his salt plant on Tuesday that the traditional
production methods farmers had used for decades were no longer
effective because, besides being less productive, the product
could not compete with imported salt.

"The farmers will remain poor and never be able to improve
their lot if they continue using traditional methods. Therefore,
the local administration, in cooperation with non-governmental
organizations, should take the initiative to introduce modern
technology to produce quality salt with a competitive price," he
said.

Insyaf said salt prices had dropped drastically to around Rp
100 (1 U.S. cent) per kilogram at present from between Rp 400 and
Rp 500 per kilo in 2003.

"Each farmer harvests around 30 tons of salt in a three-month
period but they have suffered losses because the Rp 3 million
sale of harvested salt did not cover production costs, including
the rent of one hectare of land, which has reached Rp 1.5
million, while workers are paid Rp 25,000 per day each," he said.

Farmers in the regency are holding onto their salt until March
and April next year because of an oversupply in Java. The
oversupply has been caused by the harvest season in north coastal
areas.

Tjasmudi, 42, a salt farmer in Rawaurip village, Pangenan
subdistrict, said the harvest season had not benefited salt
farmers, many of whom had pulled their children out of school
because they could no longer afford to pay school fees.

"Many farmers have stopped farming and sought new jobs at
construction sites in urban areas to survive the difficult time,"
he said, adding that his two adolescent sons were working on a
construction site in Jakarta.

Insyaf said he was lobbying the local administration to
introduce modern technology and was appealing to state banks to
provide low-interest loans to low-income salt farmers so as to
empower them.

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