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)