Indonesian Political, Business & Finance News

Trade Minister Says Chilli Prices Have Risen as Production Falls

| Source: ANTARA_ID Translated from Indonesian | Agriculture
Trade Minister Says Chilli Prices Have Risen as Production Falls
Image: ANTARA_ID

Jakarta (ANTARA) – Trade Minister Budi Santoso said the current rise in chilli prices was partly driven by lower production caused by weather conditions and seasonal factors.

“Chilli prices are affected by production, as well as seasonal factors. During certain seasons, and particularly now, production is indeed falling,” he told reporters in Jakarta on Thursday.

Budi said the average price of bird’s eye chillies was currently around Rp70,000 per kilogram, above the reference selling price (HAP) of about Rp57,000.

He said the government had been in communication with chilli farmers’ associations to encourage higher production and maintain supply amid weather-related declines.

Data from the Trade Ministry’s Market and Staple Goods Monitoring System (SP2KP) showed the national average price of curly red chillies had reached Rp69,883 per kg, well above the reference price of Rp55,000 per kg.

Meanwhile, the national average price of red bird’s eye chillies had surged to Rp81,252 per kg, exceeding the reference price of Rp57,000 per kg.

Budi also commented on the price of chicken eggs. The national average price of eggs from commercial laying hens was currently around Rp26,800 per kilogram, still below the reference price of Rp30,000 per kilogram.

He said egg prices should not be pushed too low, as this could harm farmers. Prices that fail to cover production costs could lead farmers to shut down their businesses.

“Prices must not fall too low, or farmers will close down. If farmers shut down, there will be no eggs, then eggs will become scarce and expensive,” he said.

He said the government was continuing efforts to balance the interests of producers and consumers.

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