Indonesian Political, Business & Finance News

S. Sulawesi farmers to quit growing rice

| Source: JP

S. Sulawesi farmers to quit growing rice

SIDRAP, South Sulawesi (JP): Thousands of farmers in Sidrap
regency, some 230 kilometers north of the South Sulawesi capital
of Makassar, have threatened to stop growing rice if the price of
unhusked rice does not improve before the next harvest in
October.

Frustrated by the fact that they had not benefited from
planting rice this harvest, the farmers claimed they would prefer
to plant cacao.

H. Langke, head of a farmers group in Mariatangae district in
Sidrap, said if the price of unhusked rice did not increase from
Rp 700 per kilogram before October, thousands of farmers in 364
groups in the regency would convert their rice fields to cacao
groves.

"The government should take responsibility in this," Langke
said.

Farmers across the country are upset at the drop in rice
prices.

Some of them have blamed the government for allowing imported
rice to be marketed. Other farmers consider the drop in prices
normal due to harvest time falling almost simultaneously
throughout the archipelago.

That logistics agencies lack adequate funds to buy rice from
the farmers is one of the key factors aggravating the problem.

Aware of the situation, the government allocated Rp 2.8
trillion for the purchase of farmers' rice nationwide this month.

The government also promised to set aside Rp 300 billion for
village cooperatives, which buys farmers' products for logistics
agencies.

In Sidrap, the price of unhusked rice was set at between Rp
1,100 and Rp 1,200 by the government. However, because the local
logistics agency did not buy the rice, the farmers sold it to
traders for Rp between Rp 650 and Rp 700 per kilogram.

Sidrap, which has a total of 46,000 hectares of rice fields,
is one of the province's rice bowls, with annual production
reaching 511,000 tons. Records at the local logistics agency show
that over supply of rice in the regency is some 125,000 tons per
annum.

Sidrap Regent HS Parawangsa said farmers were apparently upset
that rice was being imported into the country, saying: "We would
be very happy if the government stopped the imports, or if the
import duty was raised."

Asked what the local administration had done to relieve the
people's burden, Parawangsa said the province had exported good
quality Celebes rice. "We started exporting rice to Saudi Arabia
last month. We've also urged the logistics agency to buy the
farmers' rice."

Parawangsa acknowledged that the local logistics agency had
bought the farmers' rice, but due to bumper harvests in February,
March and April the rice surplus reached 200,000 tons in the
area. "The logistics agency is overwhelmed."

The regent said he had heard about the farmers' threat. "But I
doubt the threat will come true. It's just a threat. Please don't
exaggerate the issue," he told The Jakarta Post, describing the
farmers' frustration as a calamity.

"We have been giving guidance to the farmers and enhancing
communication with them to alleviate their frustration." (27/sur)

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