Farmers are very sensitive to the price factor. When the price of a strategic commodity is deemed unprofitable, then farmers would shift to another commodity
Jakarta (ANTARA) – House of Representatives’ Commission IV member Hermanto called for streamlining the management of chili to annul the need to import the commodity owing to production shortages and price hikes.
In a press statement here on Friday, Hermanto highlighted the report by Statistics Indonesia (BPS) that indicated chili imports having increased during the January-July 2021 period.
Based on the report, 27,852 tons of chili, valued at US$59.47 million, had been imported in the first semester of 2021.
Import during the same period of 2020 was recorded at 18,075 tons, valued at US$34.38 million. The commodity was imported from India, China, Malaysia, Spain and Australia.
The uncompetitive pricing in 2020 will be an indicator of chili shortage in 2021, according to Hermanto.
“Farmers are very sensitive to the price factor. When the price of a strategic commodity is deemed unprofitable, then farmers would shift to another commodity,” he expounded.
When farmers shift, the price of the strategic commodity, which they moved away from, will gradually climb, Hermanto pointed out.
The Ministry of Agriculture should respond to this by requesting state-owned farming enterprises to plant the strategic commodities that the farmers stopped working on, he remarked.
Hermanto believes this will ensure sufficient chili supplies, prevent the prices from skyrocketing, and avert imports.
The Ministry of Agriculture attributed the decrease in chili production to reduction of the planting field as a result of less competitive pricing in 2020.
Earlier, the Ministry of Agriculture had offered subsidy for chili distribution in order to maintain stable food supply for equal food access for all.
“Last week, we helped with the cost of chili distribution from Enrekang to Samarinda,” the Ministry’s Distribution and Food Access Center Head Risfaheri stated.
Source: ANTARA News