Local plice help secure fertilizer distribution
Local plice help secure fertilizer distribution
JAKARTA (JP): Local police are safeguarding the distribution of fertilizers to farmers in East Java, where supplies have been declining.
The chief of the Kediri police office in East Java, Col. Mudayat M.T., said his office has set up a special patrol to prevent any physical violence which might occur during the distribution process.
Clashes between farmers and managers of a village cooperative took place earlier last month in Trenggalek, East Java. The farmers suspected the cooperative of holding back its supply of urea fertilizer to boost prices.
Mudayat was quoted by Antara as saying that farmers should not be easily provoked by rumors which allege that cooperatives are mismanaging the distribution of fertilizer.
Chairman of the Indonesian Cooperatives Council Sri Edi Swasono also rejected the allegations.
He was quoted by Antara as saying on Saturday that since cooperatives had minimal capital, it was unlikely they would be able to play around with fertilizer supplies and cause shortages which had a nationwide impact.
Instead, he said he believed the lack of fertilizer was caused by planning and distribution blunders.
Serious shortages of fertilizer have been reported by local and national media as occurring nationwide over the last couple of months.
Minister of Agriculture Sjarifudin Baharsjah said last week that the government would import 200,000 tons of triple- superphosphate fertilizer to counter the shortage which he said has been caused by an early planting season in the 1995/1996 period.
He said the fertilizer supply now was lower than the current demand.
Bungaran Saragih, a lecturer and director for the Center for Development Studies of the Bogor Agricultural Institute, blamed the lack of fertilizer on speculation by traders.
He was quoted by the Kompas daily as saying that the distribution of fertilizer should be managed solely by village cooperatives, starting from the upper end of the distribution chain to the retail level.
Price increase
He also suggested that the government increase the ceiling retail prices of fertilizer to end the speculation.
The government usually announces new prices for fertilizer and rice every October. The new price of fertilizer is usually put into effect, as is that of rice, in January, the beginning of the harvest season.
However, the government, apparently concerned with the high inflation rate, decided last October to postpone last year's announcement until next month.
Chairman of the National Logistics Agency (Bulog) Beddu Amang said last week that the new floor prices for rice would be increased by at least 10 percent. The price increase, whose rate is expected to be higher than the inflation rate, is aimed at assuring farmers of a higher real income.
Last year's inflation rate reached 8.64 percent.
Saragih considered that if the ceiling prices of fertilizers were increased, the difference between prices on the international market and those on the domestic market would be reduced and, in turn, would curb people from trying further speculation.
He pointed out that the current price difference caused speculators to hold back their stocks of fertilizer until prices on the domestic market improved.
Saragih said the distribution of fertilizer should also be improved.
"It would be easier to control the distribution if cooperatives took over the whole distribution process. Farmers would understand any price increase which might occur because as owners and managers of the cooperatives, they would be the ones benefiting from the increase," he said.
And if there was fertilizer stocked up, "it would only be the cooperatives to blame". (pwn)