Govt to cut back fertilizer subsidy next fiscal year
Govt to cut back fertilizer subsidy next fiscal year
JAKARTA (JP): The government has decided to cut back
fertilizer subsidies by Rp 6 billion (US$ 2.62 million) to Rp 137
billion in the 1996/97 fiscal year, despite the commodity's
soaring price on the domestic market over the last couple of
months.
Minister of Agriculture Sjarifudin Baharsjah announced the
government's decision at a meeting with members of the House of
Representatives' Commission IV, which oversees agriculture and
forestry affairs, yesterday.
He emphasized that the cutback on subsidies does not mean that
the government will raise fertilizer prices.
"So far, the government has not stipulated any new price for
fertilizers," Sjarifudin said, adding that the government would
take steps to lower prices in the market places.
To prevent price hikes, he said, his office would act in
conjunction with the Ministry of Industry and Trade, the Ministry
of Cooperatives and Small Enterprises and state-owned fertilizer
producer PT Pupuk Sriwijaya to optimize the distribution of
fertilizers to village cooperatives and other users.
Sjarifudin said the government would also require Pupuk
Sriwijaya to keep one month's supply of fertilizer stockpiled at
its storehouses.
Pupuk Sriwijaya is currently required by the Ministry of
Industry and Trade to have extra stocks for two weeks only.
Sjarifudin said large amounts of urea fertilizer would also be
used to restore plantation areas hit severely by the 1994 drought
and to carry out the government's special farm-intensification
programs.
For the 1996/1997 fiscal year, the government estimates that
5.9 million tons of fertilizer will be needed. This amount will
consist of 3.5 million tons of urea, 1.2 tons of superphosphate-
36 (SP-36), 607,910 tons of ZA and 581,010 tons of KCL.
The media have been reporting nationwide fertilizer shortages
for the last couple of months.
Several analysts said that the lack of granular urea might be
caused by distribution problems, while others said it was due to
efforts to intensify the use of new, tablet-type urea, which
farmers actually find harder to apply.
Meat
Meanwhile, in response to recent reports on the importation of
meat, Sjarifudin said yesterday the imports could have been made
to anticipate the upcoming Idul Fitri holiday next month.
Director General of Animal Husbandry Soehadji told reporters
that meat imports were permitted as long as they were not used to
supply public markets.
"Supplies from traditional farms managed by farmers will
continue to be the backbone of our public meat market, supplying
up to 78 percent of demand," he said.
Some 16 percent would come from the larger-scale fattening
farms, where cattle are raised, and the remaining six percent
from imports.
He said Indonesia's meat consumption for the upcoming fiscal
year is expected to reach 451,000 tons, but domestic farms'
current capacity is only 352,000 tons. (pwn)