Jakarta, Jan 13 (Antara) - The government needs to anticipate the possibility of a "free fall" in the price of chili after the perishable commodity witnessed a spike in cost in various parts of the country in recent weeks.
The increase in the prices of chili, ranging from the normal rate of about Rp50,000 per kilogram (kg) to some Rp150,000-Rp200,000 per kg, triggered an outcry among consumers.
Moreover, prices, which were on the rise in at least 76 cities, contributed 0.47 percent to the country's inflation rate, which stood at 3.02 percent.
In the face of this condition, Agriculture Minister Andi Amran Sulaiman has encouraged people and housewives across the country to promote the movement of growing chilies at home.
The minister's call encouraged several others, including the military circle in Surabaya, East Java, to echo the benefits of growing chili.
"We encourage the people to plant chili on their idle land or in their house yards," Surabaya's Rungkut Sub-district Military Command Chief Maj Supriyo Triwahono noted in Surabaya on Wednesday (January 11).
By participating in the chili growing movement, consumers, though not many might likely follow or could do it, can meet their demand for the commodity.
Chili production, in fact, did not fall. Scarcities in various regions are only caused by disruptions in distribution.
Secretary of the Horticulture Directorate General of the Agriculture Ministry Yasid Taufik claimed that, so far, no problems were encountered in chili production, notably of red cayenne pepper.
The increase in the price of this commodity was caused due to an inefficient distribution system that failed to supply the commodity to the wholesale markets.
"For instance, supplies at the Kramat Jati Wholesale Market in East Jakarta, which in normal conditions, are about 70-100 tons per day, dropped to 35 tons per day. However, the decline was not caused by production-related issues," he noted.
Taufik remarked that heavy rainfall had not affected the production. The agriculture ministry has claimed that anomalies in the price of red cayenne pepper only occurred in consumer markets.
At the farmers' level, the price of red cayenne pepper is about Rp40,000-Rp45,000 per kg.
"Price anomalies in the consumer markets occur, as they are not under control," Taufik pointed out.
Hence, the price will return to normal if the distribution is smooth. It can even experience a "free fall" if the supplies exceed demand. Moreover, chili is a perishable commodity, which could disadvantage the farmers if their products rot at the production centers.
In this month alone, the Agriculture Ministry has forecast that chili production will witness a surplus of about 5,000 tons.
Director General of Horticulture Spudnik Sujono stated during a chili harvest in Purworejo Village, Malang District, East Java, on Wednesday that his ministry believes chili production this month will reach 73 thousand tons. Chili requirement is estimated at 68 thousand tons, thus recording a surplus of some 5,000 tons.
According to the director general, the annual per capita consumption level of Indonesians is relatively small, at about 1.26 kg, or about 0.105 kg per month.
"The daily per capita consumption of chili in the country is only about 35 grams. Hence, there is no need to panic (of falling short of supplies)," he emphasized.
Agriculture Minister Amran Sulaiman believed that concerns related to the commodity have overshadowed the ministry's success in increasing the production of 13 other food commodities.
"We have been rather distressed for the past few days due to the jump in chili prices, but it has inspired me to come up with out-of-the-box ideas that would allow us to increase chili production," he added.
Planting chili at home is more beneficial, as households can meet their own needs for the commodity, thus reducing expenditure and ultimately helping stem inflation.
"Chili prices have become a trigger for inflation, and one of the ways we can counter this is by growing chili plants at home. It can also be hugely beneficial," he remarked.
In the meantime, Trade Minister Enggartiasto Lukita conducted an observational tour of several markets in Jakarta on Thursday (January 12) to check the prices of basic necessities and to ensure their proper distribution to consumers.
The minister, among others, visited the Koja Baru Market in North Jakarta, the Rawamangun Market in East Jakarta, and the Jatinegara Market in East Jakarta.
Based on his personal observation, the minister found no hindrance in the stock distribution, while the prices were stable.
The minister has inspected the prices and stocks of other necessities, such as chili and rice. For red cayenne pepper, the government has organized market operations through its state-owned logistics board Bulog to sell the commodity at Rp65,000 per kg.
"Bulog and the Indonesian Trading Company (PPI) have been supplying basic necessities to the consumers by conducting market interventions. The commodity is distributed from the regions, which have adequate supplies, to areas facing a shortage of the commodity," the minister explained.
Since its assignment by the trade ministry, the PPI has distributed some five tons of cayenne pepper from South Sulawesi to the other regions, which are facing a shortage in supplies, such as the provinces in Kalimantan, Java, and Bali.
Data revealed by the Ministry of Agriculture indicated that the average production of red chili had reached 1.29 million tons, while the demand touched 900 thousand tons per annum. The production of cayenne pepper was recorded at 950 thousand tons and is said to be in surplus. (A014/INE/B003)EDITED BY INE(T.A014/A/BESSR/Bustanuddin) 13-01-2017 16:43:3 |
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