Govt urges importers to release soybean stocks
Jakarta (ANTARA News) - The government called on importers on Wednesday to release their soybean stocks to the market in order to help stabilize the commodity`s price.
Director General for Processing and Marketing of Agricultural Products Djoko Said Damardjati said his office had held talks with the Trade Ministry on how to stabilize the soybean price to the normal level of about Rp4,000 per kg.
He said importers still had about 200,000 - 300,000 tons of soybean stocks which could be released into the market to keep the price under control.
"Demand for soybean stands at 6,000 tons per day so that the stocks of 300,000 tons which could be used until March would be released to stabilize the market prices," the director general said.
He said however that actually it was no longer feasible to return the soybean price to Rp4,000 per kg. Thus, importers, producers and all parties involved should later adjust themselves to a price which had been made stable.
Djoko said the government was now discussing what the ideal soybean reference price which could benefit all parties such as producers, importers and the government.
"The concept is to decide a mechanism that would stabilize the price. We will develop balanced communication. The trade ministry will set the reference price," the director general said.
On the reference price, Djoko said his office had proposed a production cost of Rp4,500 at the farmer`s level and Rp5,500 per kg at the retail level.
"The Agriculture Ministry will consider inputs from importers to calculate a reference price. The reference price will be a compromise," he said.
On the possibility of importing soybean from countries other than the United States, the director general said the commodity could be imported from Argentina or Brazil but consumers preferred soybean from the United States.(*)
Director General for Processing and Marketing of Agricultural Products Djoko Said Damardjati said his office had held talks with the Trade Ministry on how to stabilize the soybean price to the normal level of about Rp4,000 per kg.
He said importers still had about 200,000 - 300,000 tons of soybean stocks which could be released into the market to keep the price under control.
"Demand for soybean stands at 6,000 tons per day so that the stocks of 300,000 tons which could be used until March would be released to stabilize the market prices," the director general said.
He said however that actually it was no longer feasible to return the soybean price to Rp4,000 per kg. Thus, importers, producers and all parties involved should later adjust themselves to a price which had been made stable.
Djoko said the government was now discussing what the ideal soybean reference price which could benefit all parties such as producers, importers and the government.
"The concept is to decide a mechanism that would stabilize the price. We will develop balanced communication. The trade ministry will set the reference price," the director general said.
On the reference price, Djoko said his office had proposed a production cost of Rp4,500 at the farmer`s level and Rp5,500 per kg at the retail level.
"The Agriculture Ministry will consider inputs from importers to calculate a reference price. The reference price will be a compromise," he said.
On the possibility of importing soybean from countries other than the United States, the director general said the commodity could be imported from Argentina or Brazil but consumers preferred soybean from the United States.(*)