Slamet Susanto and Yuli Tri Suwarni, The Jakarta Post, Yogyakarta, Bandung | Tue, 07/27/2010 10:34 AM
The price of staple foods in Yogyakarta is increasing dramatically in the run-up to Ramadan next week, but the government has vowed to release stockpiles to stabilize prices.
Most noticeable is the increase in the price of chili, which was previously sold for Rp 12,000 (about US$1.20) per kilogram in early June and now costs as much as Rp 35,000 per kilogram.
There has been a threefold price increase because several production centers are facing harvest failure due to uncertain weather.
"When chili plants were about to bear fruit, rain suddenly came and withered the plants. The majority of farmers here failed to harvest," said Triyanto, a farmer in Sanden, Bantul.
Sanden has 800 hectares of chili farms, many of which are facing crop failures due to the weather.
Sugar produced by PT Madubaru has risen from Rp 8,800 to Rp 9,750 per kilogram from the first to the third week of July.
The price of sugar produced in East Java has also increased to Rp 9,625 from Rp 8,500 per kilogram in the corresponding period.
"Based on observations at a number of traditional markets, the prices of various kinds of sugar have risen," Yogyakarta Industrial, Trade, Cooperatives and Agriculture Office representative Sugeng Darmanto said.
According to Sugeng, the price increase in Yogjakarta was triggered by a policy of the governor of East Java that banned the sale of sugar produced in East Java outside the province. The supply of sugar produced in Central Java is not sufficient to meet demand in Yogyakarta, he added.
PT Madubaru can produce 33,000 tons of sugar per year, while demand in Yogyakarta is more than 50,000 tons. "We bring in sugar from East Java to meet demand," said Sugeng.
Rice is also more expensive. The price of Mentik Wangi variety rice increased from Rp 6,975 to Rp 7,200 per kilogram and Mentik Super from Rp 6,625 to Rp 6,875.
The prices of vegetables such as eggplant, long beans and water spinach have also risen but are still within normal range.
In Bandung, West Java; Trade Minister Mari Elka Pangestu said that the government would continue to stabilize the spiraling prices of staple foods as a result of the recent hike in electricity rates and the weather.
Mari said the government would conduct market operations and release reserves of nine staple foods, specifically cooking oil, ahead of Ramadan and Idul Fitri holiday.
Mari and West Java Governor Ahmad Heryawan made an impromptu visit to Bandung's Kosambi traditional market on Monday to observe the rice market firsthand and monitor the prices of staple foods.
In the proposed market operation to be conducted by the West Java provincial administration and State Logistics Agency (Bulog), medium quality rice will be sold for Rp 5,800 per kilogram, which is cheaper compared than the retail price of Rp 6,000 per kg.
"We have just visited the market and found that the prices of staple foods are stable. The prices of chili and rice have dropped and are relatively stable," Mari said Monday.
Mari said the prices of staple foods had stabilized thanks to the joint market operations.
A 5-10 percent price increase was normal, especially ahead of Ramadan, she added.
"The prices of chicken and eggs will fluctuate as in previous years because of the fasting month and Idul Fitri. We will make efforts to monitor the prices to prevent the surge in prices," Mari said.
