JAKARTA (Lenteratoday) – The polemic over the price of a number of foodstuffs that people are still complaining about has not been resolved. It is even suspected that more food products will experience price increases.
This was disclosed by the Indonesian Peasant Union (SPI) which reminded the government to be aware of the cost of agricultural production which has risen significantly in recent months. This increase is expected to affect production in the following months.
Head of the National Strategic Studies Department of the Central Board of SPI Mujahid Widian said production costs still needed to be considered even though the Farmer’s Exchange Rate (NTP) in June 2022 rose 0.52 percent compared to the previous month’s NTP. The Central Statistics Agency (BPS) recorded the NTP in June 2022 at 105.96.
“From the data published by BPS, we can see that the lb or the price that must be issued by farmers continues to increase. Meanwhile, LT or the price received by farmers, although overall it has increased, if we look at each sub-sector, it is quite worrying,” said Mujahid in his official statement, Tuesday (5/7).
He gave an example of the food crops sub-sector with an NTP value below 100 or the break-even standard. The decline was caused by the decline in commodity prices for corn, while for grain it was relatively stable. This condition is faced with rising costs that must be incurred by farmers, both for consumption and production costs.
Then, in the horticulture sub-sector, the increase in FTT was influenced by the lack of supply. This is what happened with chili. The high demand then made the price of chili soar high during June 2022.
In contrast to the FTT for food crops, the increase in FTT for horticulture was restrained by the high cost of production and additional capital compared to the increase in the consumption index.
“For leaf vegetables, there has also been an increase. In Bogor, for example, because many farmers did not plant during the last Eid holiday, there has been a decline in production at this time. The price factor which is rarely stable also has an impact, many farmers are reluctant to plant,” said Mujahid.
In the smallholder plantation sector, Mujahid explained that low prices at the farmer level are still the main problem, especially for palm oil.
Although the government has lifted the ban on the export of CPO and its derivatives, this has not been felt in the field, especially for independent oil palm farmers and SPI members in various regions.
Another sub-sector that also needs attention is the people’s livestock sub-sector. In general, the livestock sector is currently facing an increase in feed prices that reaches 25 to 30 percent. Apart from that, livestock is also being overshadowed by an epidemic of Mouth and Nail Disease (FMD).
Mujahid assessed that there were no effective government policies to deal with the turmoil in each of the NTP sub-sectors. Various policies in the smallholder plantation sector, such as stabilizing cooking oil prices, have not yet reached the target.
“The same goes for the livestock sub-sector. The outbreak of FMD is due to the government’s rashness in taking import policies from countries that are not yet free of FMD, as a result, the outbreak enters from abroad. Again, the victims are farmers and ranchers,” he said.
Therefore, SPI urges the government to return to the principles of food sovereignty. The people’s interest in food must be a top priority with the state being present in ensuring that production factors, access to local seeds, access to markets and financial assistance are fully enjoyed by farmers and food producers.
Food sufficiency, both in terms of affordability of distance and price, as well as nutrition and food security, must also be met from food production by domestic farmers.
“Because Indonesia is still not free from dependence on food from abroad, of course we have to build food sovereignty in the country. Food must be produced for the national interest, and this must begin by applying the principles of food sovereignty in various agricultural policies,” said Mujahid.
Source: CNN | Editor : Endang Periwati
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