Wed, 29 Aug 2001

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)