Fertilizer disappears in N. Sumatra

Fertilizer disappears in N. Sumatra

MEDAN, North Sumatra (JP): The gradual disappearance of
fertilizer from North Sumatra markets in the last two months has
prompted the Indonesian Fertilizer Producers Association (APPI)
to decide to import fertilizer for the sake of the farmers.

APPI chairman Buyung Berland said on Monday that APPI would
soon import between 50,000 tons and 70,000 tons of fertilizer,
worth some US$10 million.

He did not say when the association would start the fertilizer
import and from what countries the fertilizer would be sourced.

According to Buyung, the closures of PT Pupuk Iskandar Muda
and PT Asean Aceh Fertilizer (AAF), two fertilizer factories
located in the restive province of Aceh, had played a significant
role in the shortage of fertilizers, especially urea, in North
Sumatra.

The two fertilizer factories stopped their operations on March
9.

Sharing his views, secretary of the North Sumatra Commission
on the Supervision of the Use of Fertilizers Elianor Sembiring
said that the plan to import fertilizer would be the best
solution to help farmers obtain good quality fertilizer legally.

"If the fertilizer crisis is not dealt with soon, fake
fertilizer could enter the market," Elianor said.

The disappearance of fertilizer from the market has driven up
the price of fertilizer.

Ngadap Tarigan, a distributor in Kabanjahe, Tanah Karo, said
the fertilizer prices had increased by 20 percent. "A 50-kilogram
sack of fertilizer now costs Rp 60,000, Rp 10,000 higher than the
previous price."

"The supply of urea has been disrupted for the past three
months. Before the crisis I could get as much as 600 tons. Now I
would be lucky to get even 10 tons." (42/sur)