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Govt allocates US$250 million to eliminate corn imports
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Farmers from East Manggarai regency, East Nusa Tenggara, celebrate a bountiful harvest of hybrid corn on Thursday. (thejakartapost.com/Markus Makur)
T
he Agriculture Ministry has allocated Rp 3.3 trillion (US$250 million) for its corn development program, an increase of Rp 1.2 trillion from last year’s budget, in a bid to achieve zero percent imports in 2017.
Since 2015, the government has launched programs aimed at reducing agriculture imports, including the allocation of 1 million hectares (ha) of new land for corn, machinery aid and price controls. Corn imports during January to July 2016 amounted to 800,000 tons, a 60 percent drop compared to the 2 million tons imported in the same period last year.
"We will add another 1 million ha, 724,000 ha are available this year, and the remainder will be ready next year. It will be enough to eliminate corn imports in 2017," Agriculture Minister Amran Sulaiman said at his office after signing a memorandum of understanding (MoU) with the Indonesian Feed Millers Association (GPMT) in Jakarta on Monday.
The additional 724,000 ha are projected to increase local corn production by 3.5 million tons. The production will be absorbed by the feed producers following the MoU. "They don't have to import anymore. With this system, business will get supply and farmers can sell their harvests within the administered price," Amran said.
As a result of imports, the corn price fell to Rp 1,650 (12.5 US cents) per kilogram in March 2015, much lower than the government's administered price of Rp 3,150 per kg. Amran said Indonesia produced 20 million tons of corn last year but sustained Rp 20 billion in losses because of imports. (ags)
