Sugar, flour brokers in chili business

Sugar, flour brokers in chili business

JAKARTA (JP): The Association of Indonesian Sugar and Flour
Distributors (Apegti) will assist the National Logistics Agency
(Bulog) in stabilizing the prices of chili and onions, which have
largely contributed to the country's inflation rate.

Bulog Chief Beddu Amang said in statement here yesterday that
fluctuating commodity prices, which can double in the space of a
month, are often behind the rises in the country's inflation
rate.

"Apegti has agreed to assist Bulog starting from the
plantation to the distribution of the commodities. They will
start planting in various regions at times when the farmers'
planting activities are the lowest, or after the farmers have
finished harvesting," he said.

Beddu said that the seasonal planting and harvesting
activities have also caused the prices of chili and onions to
soar periodically, especially in large cities.

Onion prices currently range between Rp 1,800 (80 U.S. cents)
and Rp 2,800 per kilogram, while chili costs between Rp 1,000 and
Rp 3,100 per kilogram.

Beddu said that the two commodities contributed 0.34 percent
to the inflation rate in May, when it reached 0.49 percent.

Under the new program, Apegti will require sugar and flour
distributors to plant chili and onions in their respective areas.

Beddu said the areas for chili and onion plantation may vary
between 2.5 and 10 hectares.

"But we don't want to plant too much, otherwise prices may
fall and cause disadvantages on the part of farmers," he said.
(pwn)