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Searching for Rice Price Increase Solution

The government's policy, Äùgemar, AU raise the price of rice through the government purchase price has become a boomerang. Moreover, if the policy is not yet able to transmit the welfare of the farmers and vice versa exceeded, Äùdaya resistant, AU community.

Problem of rising rice prices today can not be separated from the policy of the government purchasing price (HPP) and the strategy of agricultural development policy and the national economy.

Since President Susilo Bambang Yudhoyono to lead, carrying five times for grain and rice HPP increased (January 2006-January 2010). In fact, the year 2008 HPP policies issued two times, ie, April, and December.

HPP encourages rising rice prices in the market. Price byproduct of rice milling industry, such as bran, also rose. It also sparked competition tighter land use.

As a result, the price of corn and soybeans rose. This prompted rising feed prices. Currently, preparing feed industry selling prices increase more products. Because the feed increased, the price of farm products, such as meat and eggs, also rose. In short, all rose. Good prices for food and nonpangan. Not to mention the impact of tariff increase of electricity and fuel.

On the other hand, price increases are not proportional to the increase in incomes. Civil servants and TNI / police better since receiving a raise.

What about the informal traders and service sector that dominated the small people? Like the fate of public transport drivers, motorcycle taxi, taxi, pedicab drivers, construction laborers, farm laborers, fishermen, hawkers, and other similar type of work that's a small person.

Since all the price rises, it triggers the more frugal society. These are the most upset because their incomes fall affected.

Moreover, the delta of HPP with the price of rice in the market this year reached a record high, in excess of Rp 1,200 per kg. Consequently, any increase in current prices is felt so miserable.

Compared to Thailand and Vietnam, rice prices in Indonesia are higher for the same quality. High prices lead to vulnerability, especially when it exceeds the threshold of endurance community.

Distracted

Controlling the price of rice became fixed price. This was done by way of maintaining rice production in order to stay well and controlled the price in the market. The first business of the Ministry of Agriculture (Kemtan) and the second task Bulog.

Since 2006, national rice production continues to increase. This is because of three factors, namely, programs for seed and fertilizer for free, the drive traction improved rice prices, and the introduction of hybrid rice seeds.

Of course there are other factors, such as agricultural extension work and agricultural bureaucracy at the central and local. However, for these, so do not feel the vibration in the field.

Achieving self-sufficiency in rice within two years seemed to make the government complacent. The focus of government then is not how to maintain momentum in production despite difficult climate, but how to reduce subsidies for agriculture.

Efficiency of movement was spread everywhere. Fertilizer subsidy in 2010 and 2011 is trimmed. Bulog also not to lose money. In fact, if you want honest and ask the farmers, they prefer grain and rice prices did not rise, but prices of other necessities of life remain.

In the midst of the euphoria of self-sufficiency and reduction of fertilizer subsidies, changes in extreme climate to come. Rainy season rice harvest in 2010 was not encouraging for farmers. Quality of rice were destroyed, the farmers complained sagging productivity. In some areas, they shouted to crop failure.

Still, was predictable, the national rice production must increase. Central Bureau of Statistics to calculate rates of rice production in the first forecast, released in June 2010 BPS rose to 65.15 million tonnes of grain milled dry. National rice production is the result of multiplying the productivity of paddy per hectare and harvested area.

BPS calculates productivity by plot sampling model. The area harvested data Kemtan paid. Although land use 110 000 hectares of food per year and print 15,000 hectares of new rice fields per year, a planting and harvesting of rice continues to increase every year.

Rising production of paddy (rice) based on the BPS estimate is certainly growing increasingly optimistic that the national rice supply is safe. Therefore, no need to panic over some natural phenomenon.

In fact, when the Director General of Food Crops Sutarto Kemtan Alimoeso Bulog drawn into the Managing Director, until now there is no fixed figure who succeeded him.

In fact, the director general of food crops is the highest officials who are responsible for strategic success and failure in rice production. Not only that, the crop protection directorship that is most responsible officials in the affairs of the rice pest, including the aphis, also left empty. I wonder what background?

In fact, very poor conditions in the field. Entrepreneurs during the main harvest of rice in 2010 and difficulty in obtaining grain. Disruption caused by weather and crop pest and disease, especially aphis and kresek, resulting in reduced supply. Because of lack of supply, prices were soaring.

At the same time, the trauma Bulog lose USD 720 billion in 2009 era, the leadership of Mustafa Abubakar, also a scourge to the central government. When Mustafa became Managing Director of Bulog, there Bulog priority on procurement of rice as much as possible. Quality is secondary.

Therefore, many cases raskin bad quality. However, stocks at fantastic Bulog so that traders fear to speculate.

Sutarto try to change the model approach, Bulog losses should be minimized. If need be zero. Raskin quality must be improved. However, consequently, low absorption Bulog rice and rice price stability in the market at stake.

Two-edged spears

Policy HPP raise grain and rice as the only major solution in promoting the welfare of farmers as a two-edged spears.

Not that the increase in COGS is not important. However, far more important than it is to increase crop productivity with fixed policy choices within the framework of food sovereignty. In addition, it also encourages an increase farmers' income through other sectors outside of agriculture.

No wise of course expect the welfare of farmers by 0.5 hectares of cultivated land. The same is not wise to divide the government policy of land in Merauke, Papua, in the midst of a hungry peasant land resources.

The only way to pull out of the agricultural labor force in agriculture sector is developing non-agricultural industries and agricultural raw material locally. Expanding access to jobs in trade, services, and industry for their own citizens in order to evenly split the economic pie.

Not by building shopping malls and shopping centers that content and foreign ownership, foreign franchise shops, shopping centers present in the villages, and the import of processed food products from neighboring countries.

If all, Äùasing Au model national economic development, community work and want to eat what? Beyond all that, climate adaptation and mitigation should no longer run casually. Resistant varieties should continue to produce an extreme climate with leaps of technology.

The increase in rice prices will inevitably continue to occur. In March 2011 the price of medium quality rice or the most widely consumed by people of Indonesia Husein Sawit rice observers predicted would be increased to Rp 7600 per kg.

If rice is medium-high, the premium rice through the USD 10 000. Society certainly is not going to survive. What about government?


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