RI fails to get relief on coffee retention scheme
RI fails to get relief on coffee retention scheme
By Riyadi
NUSA DUA, Bali (JP): Indonesia failed yesterday in its efforts
to gain some relief from the export retention scheme aimed at
boosting prices among coffee-producing countries.
The Management Committee of the Association of Coffee
Producing Countries (ACPC), which met here yesterday, did not
make any decision about the Indonesian-sponsored proposal on the
export program in relation to its members.
"Because of the nature of the committee, there was no
political decision taken here. This is important, not to
frustrate expectations, because it was not anticipated to take
any policy decision today," association chairman Rubens A.
Barbosa said after the meeting.
Yesterday's meeting was attended by representatives from
Brazil, Colombia, Costa Rica, Cote d'Ivoire, El Salvador,
Indonesia, Kenya, Tanzania, Uganda and two African coffee
organizations.
Indonesian Minister of Agriculture Sjarifudin Baharsjah
proposed at the opening of the meeting that the association
consider a more flexible implementation of the export program for
its member-countries, depending on their respective production
capacities.
He said that at the time of the launching of the export
retention program in October 1993, Indonesia produced some
450,000 tons of coffee and had 550,000 tons available for export.
However, because of poor climatic conditions, Indonesia's
coffee output for the 1994-1995 coffee year, ending last
September, was estimated at only 375,000 tons.
"This necessitates a more flexible implementation of the
retention plan to avoid unnecessary and unfair burdens on the
part of our producers and traders," Sjarifudin said.
When asked about the Indonesian proposal, Barbosa declined to
comment. "This is to be up to the country to decide. I'm the
coordinator. I cannot give my personal opinion on this matter,"
he said.
Barbosa reiterated that the committee had not discussed
Indonesia's suggestion as made by the minister.
Understanding
Meanwhile, Association of Indonesian Coffee Exporters chairman
Oesman Soedargo said that the ACPC could reach an understanding
of the Indonesian situation.
"It is true that today's meeting did not discuss or take any
decision on the retention scheme. However, based on the
evaluation on the difficulties we face, the meeting could
understand any policies to be taken by the Indonesian
government," Oesman said.
He said such an "under standing" would mean that the ACPC
would "tolerate" Indonesian policies which might deviate from the
retention scheme.
The scheme requires countries to hold back exports by 20
percent when prices of robusta -- which makes up the bulk of
Indonesian coffee exports -- drop to below US$1.35 per pound.
Producers must retain 10 percent of robusta exports when
prices, based on the ACPC's calculation of a 20-day moving
average, are between S1.35 and $1.50 per pound.
Currently, international coffee prices range from S1.04 to
$1.10, which automatically requires a 20-percent retention.
Barbosa said that the ACPC's management committee had
recommended at yesterday's meeting the initiation of internal
consultations regarding the coordination of supply policies after
June 1996.
The results of these internal consultation will be reviewed at
the association's next meeting, which is to be held in London in
January, Barbosa said.
He also reported that the implementation of the export program
in the July-September period of this year had exceeded its target
by 5 percent, reaching 15.4 million bags.
The difference would be adjusted for in the October-December
period, Barbosa said.