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Sugar prices, drought hit West Java farmers

Prolonged drought and low sugar prices are threatening the livelihood of thousands of sugarcane farmers in West Java

Nana Rukmana (The Jakarta Post)
Cirebon
Thu, August 28, 2008

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Sugar prices, drought hit West Java farmers

Prolonged drought and low sugar prices are threatening the livelihood of thousands of sugarcane farmers in West Java.

Farmers in the province said Monday the government-regulated sugar price of Rp 5,000 (55 US cents) per kilogram had failed to adequately bugger the production cost of Rp 4,900 per kg.

"We hope the government will adjust the sugar price to Rp 5,200 per kg," said Anwar Asmali, chair of the West Java chapter of the Indonesian Sugarcane Farmers Association.

The low selling price has also prompted farmers and traders to stockpile sugar in the province.

"People have hoarded some 170 tons of sugar at a number of warehouses. Farmers are likely to store more sugar unless a proper price for sugar is set, especially ahead of the sugarcane harvest this year.

"Sugar imports and the huge volume of stockpiled sugar has caused sugar prices to drop," said Anwar

Anwar said he was concerned to find many farmers converting their sugarcane fields to corn or rice.

"Sugarcane farmers in Central Java have shifted to corn because they don't get a decent profit from sugarcane," he said.

He predicted it would be hard to meet this year's target of national self-sufficiency in sugar due to many problems encountered by sugarcane farmers and traders.

Anwar said national demand for sugar was about 3.3 million tons, 2.5 million tons for domestic consumption and the rest for industrial needs.

"We have to import sugar because national sugar production only yields 2.3 tons," Anwar said.

Farmers in West Java are also worried about the severe drought which could damage their farms. Presently about 2,500 out of 12,500 sugarcane plantations in the province are damaged.

The worst-affected areas include Sindanglaut, Tersana Baru and Karang Suwung districts in Cirebon regency.

The Darma reservoir in neighboring Kuningan regency, the main water source for sugar plantation irrigation in Cirebon had dried up due to the prolonged dry spell.

"Three people usually work a 1-hectare sugarcane farm.

"More than 6,000 farmers and their workers are threatened by the severe dry season and that's likely to hurt the September harvest," Anwar said.

He estimated farmers in the province will suffer at least Rp 7.5 billion in losses from this year's low yield.

Based on the association's data, Cirebon regency leads in sugarcane farms with 8,700 out of 12,500 hectares of West Java's total sugarcane farming area. The remaining are spread through Majalengka, Indramayu and Subang regencies.

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