The high price of fertilizers is one of the problems burdening rice farmers, which they often complain about, Bayu Krisnamurthi, deputy to the coordinating minister for the economy, in charge of agriculture and maritime affairs, said Friday.

"The new cabinet should work out new rice policies. There are some issues that should be sorted out, like the price of fertilizers, which farmers have asked to be changed," he said.

As an example, farmers in West Nusa Tenggara (NTB) are still living in poverty after 15 years of producing a rice surplus in the province, according to the NTB Statistics Agency. The NTB index of farmer exchange value (NTP) in August stood at 96.24, down 0.14 percent from July, below the minimum NTP of 100, which indicates the lowest level of a healthy exchange value.

Data at the national level shows that only 13 out of the archipelago's 33 provinces had an NTP index above 100 in July and August.

NTB province was ranked 31st, the third lowest after Jambi whose NTP index was 95.8, and Bangka Belitung whose NTP index was 93.99.

Bayu said the current government had designed a policy to ensure subsidized fertilizers went to the right farmers. "The subsidy is becoming a targeted subsidy. In 2010 there will be some trial and error, and by 2011 it will be working properly."

The Central Statistics Agency (BPS) will provide data on which farmers are eligible to receive the subsidy.

Indonesia has managed to reach national self-sufficiency in rice this year, with an estimate from the State Logistics Agency (Bulog) that there will be 4.5 million tons of rice in stock by the end of the year, enough to meet rice demand for two months.

Another problem facing the new government is subsidized rice to the poor - dubbed as raskin or poor rice - said Bayu. The price of raskin will likely be maintained at Rp 1,600 (17 US cents) per kilogram, which will increase the cost of the rice subsidy as the price of rice has increased.

The new government will also meet obstacles in securing sugar supply without imports. Economists and businesses have complained about the decision of the current government to import sugar, which they say will eventually burden domestic sugar producers and farmers.

The Agriculture Ministry has said farmers will strive to raise the production of staple foodstuffs, including sugar and rice, if the government can achieve price stability.

Stable prices for staple foodstuffs will help ease inflation, avoiding damaging people's purchasing power, the main driver of the economy.

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