Fruit farmers will get low-interest loans

JAKARTA (JP): The government has designated a number of banks to provide loans to farmers carrying a low interest rate for the development of the horticultural industry.

The loans, which will amount up to Rp 2 million for each hectare of land used for horticultural planting, will carry an annual interest rate of 14 percent -- far lower than normal interest rates ranging from 18 percent to 20 percent per annum, the director for horticultural development of the Ministry of Agriculture, Winarno, told a press conference here yesterday.

He said that for the first stage, the loans will be provided for the planting of six types of fruit.

The six commodities are banana, pineapple, papaya, orange, markisa (passion fruit) and salak (Zallaca palm fruit).

Winarno, who declined to specify the names of the designated banks, said that the loans are part of the ministry's policy to develop agribusiness and agroindustry.

"In order to boost the growth of agroindustry, the development of our horticultural industry, which is currently dominated by farmers planting fruit trees in their courtyards, will be offered to large entities," he said. "The economic scale of the horticultural development will need at least 500 hectares for each plantation area."

Since 1991-92, the government has assisted groups of farmers in establishing 120,000 hectares for agricultural production in various provinces.

Winarno said the development of the horticultural industry will also include the application of technology which can lead to the standardization of fruit quality.

Goeswono Soepardi, president of PT Galasari Gunungswadaya of Gresik, East Java, said that quality standardization is a must if Indonesia wants to participate in the international markets.

"We exported five tons of mangoes to Singapore last week and the importer asked us to send 18 more tons next week but we cannot meet the demand due to limitations in production," Goeswono said. "It is also impossible for us to send mangoes from farmers' plantations which produce fruit of an inferior quality."

He suggested that fruit producers and farmers establish an association, which expected to introduce standardization of product quality.

Currently, Indonesia's share on the international tropical fruit market is only 0.6 percent. (als)