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Jakarta Post

Government resorts to imports after harvest failures

The government is speeding up the import of several agricultural products in a bid to back up supplies and keep prices intact amid the high demands of the Islamic fasting month and upcoming Idul Fitri holidays

Anggi M. Lubis (The Jakarta Post)
Jakarta
Wed, July 17, 2013

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Government resorts to imports after harvest failures

T

he government is speeding up the import of several agricultural products in a bid to back up supplies and keep prices intact amid the high demands of the Islamic fasting month and upcoming Idul Fitri holidays.

Agriculture Minister Suswono said the government had started bringing in more shallots and chilies as heavy rain in this dry season '€” when commodities are usually harvested '€” had severely disturbed production and further disturbed supplies.

According to Suswono, central producing areas such as Brebes in Central Java, will only start harvesting in August.

'€œWe are lacking stocks of shallots and cayenne. We have teamed up with the Trade Ministry to speed up imports for registered importers to help out with the shortage,'€ he said.

Trade Minister Gita Wirjawan told the media earlier that the government had sped up the import of shallots and cayenne, 4,000 tons each, from Vietnam, Thailand, and India. The commodities are expected to enter the market by year'€™s end.

According to Agriculture Ministry data, import quotas for shallots and cayenne for the second half of this year are 9,700 tons and 16,800 tons, respectively.

The soggy dry season has sapped production and driven up prices of the horticultural commodities.

Meanwhile, Chili Producers Association (AACI) chairman Dadi Sudiana said chili production was estimated to decrease by 40 percent due to harvest failure but hoped the government would not issue import recommendations, fearing that imports would further inflict losses on farmers.

Indonesia produced 960,000 tons of shallots and 697,000 tons of cayenne last year.

Data from the Trade Ministry said that by the end of last week, the price of shallots in Jakarta reached Rp 63,000 (US$6.3) a kilogram while the price of cayenne hit Rp 117,000 a kilogram.

Food prices in July have seen a 5 percent increase compared to in June, with chilies seeing a 63 percent price increase, shallots a 49 percent increase, chicken meat a 19.5 percent increase, eggs a 9.32 percent increase, while the price of beef has gone up 41 percent, according to a recent release from the Business Competition Supervisory Commission (KPPU).

The commission itself has deployed a team to investigate the possibility of cartels behind the soaring prices.

President Susilo Bambang Yudhoyono recently blasted Suswono for failing to bring down food prices, mainly beef, before the start of Ramadhan.

In April, the government appointed State Logistic Agency (Bulog) to import an additional 3,000 tons of beef to push down and maintain prices during the holy month.

Bulog is expected to bring in 800 tons of beef on airplanes this week, while the remaining 2,200 tons will be transported by cargo ship and is projected to enter the market by the end of July. Data from the Trade Ministry said that beef prices reached Rp 93,770 per kilogram last week.

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