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)