Farmers get compensation for failed rice harvest

Slamet Susanto and Jon Afrizal ,  The Jakarta Post ,  Purworejo, Jambi   |  Mon, 09/15/2008 10:14 AM  |  The Archipelago

Farmers suffering from a failed harvest after planting the controversial Supertoy HL-2 rice variety received compensation Saturday from seed developer PT Sarana Harapan Indopangan (SHI).

The seed company allocated more than Rp 1.64 billion (US$175,400) to distribute to farmers in Grabag village, Purworejo regency in Central Java where 96 hectares of paddies were affected.

Harvest failure is not limited only to farmers on Java but also befell farmers in Jambi province on Sumatra where 114 farmers have claimed a loss of Rp 2.4 billion for some 164 hectares of paddies.

The compensation was given to farmers in Grabag who usually plant the IR 64 rice variety.

The seed company had told the farmers the Supertoy variety could be harvested three times without cutting down the rice stalk.

"We usually plant IR 64. That's why we asked for the compensation to be based on that variety," said Grabag village chief Gandung Sumriyadi.

The farmers received Rp 23,800 for each tile, which is 14 square meters of paddy. This amounts to about Rp 17 million per hectare which is made up of 714.28 'tiles' of paddy.

"We have received the compensation in full without any tax taken," Gandung said.

Pardono, 50, a local farmer who failed to reap any harvest from his 75 tiles, said he would use the Rp 1.8 million compensation he received to meet his family's needs for Ramadan.

PT SHI farmer liaison, Bustanudin, said since the compensation has been distributed, cooperation between both parties would cease.

"The harvest failure was caused by water shortage," he said.

The company, reportedly owned in part by President Susilo Bambang Yudhoyono's special staff member Heru Lelono, claimed the strain is immune to disease and capable of higher yields.

Presidential spokesman Andi Mallarangeng denied any relation between the company and the President.

Amid demands he resign, Heru has recently said SHI would settle the problem with the farmers.

Equivalent compensation has also been promised for farmers similarly affected in Sri Agung village in West Tanjungjabung regency, Jambi.

As many as 114 farmers in Sri Agung village in the West Tanjungjabung regency of Jambi planted the same across 164 hectares of farmland.

Organized into 18 groups, the farmers -- who used to rely on a different variety of rice -- announced they had suffered Rp 15 million in losses per hectare after planting Supertoy HL-2 at the suggestion of the seed developer.

"The result of the harvest did not live up to the company's promise. We suffered losses from planting the seeds," said Wakimin, one of the farmers.

The affected farmers, who own an average of one to two hectares of farmland each, agreed to plant the new strain after an April meeting with representatives of SHI along with village and district heads, he added.

During the meeting, the company promised to provide compensation if the strain resulted in a failed harvest, Wakimin said.

"It was just a verbal guarantee on compensation. There is no agreement on paper," he added.

Another farmer, Jumadi, said the company's claim that the new seeds could be harvested three times without replanting turned out to be false.

PT SHI told the farmers the seeds could produce 10 to 13 tons, 10 to 15 tons and 10 to 13 tons per hectare during the first, second and third harvests, respectively, Jumadi added.

"Many farmers were interested in planting the seeds so they wouldn't have to exert more energy replanting," he said, adding the company could only provide seeds for 164 hectares, rather than for all 800 hectares of farmland in the village, citing a lack of seed stock.

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