Agriculture Minister Proposes Revoking Subsidized Fertilizer

TEMPO.CO, Surakarta - Agriculture Minister, Suswono, has proposed removing budget for subsidized fertilizer after protests from farmers regarding scarcity of subsidized fertilizer.

"The budget has reached Rp18 trillion, but it is still not enough. Fertilizer subsidized is all over the place," said the minister, adding that the price of subsidized fertilizer must be adjusted to the market price, which is around Rp250,000 per sack.

As a compensation, the Rp18 trillion budget will be allocated for farmers' other needs such as improvement of irrigation in various regions, which needs Rp21 trillion. "If the irrigation is good, farmers can harvest three times a year," Suswono said.

Assuming average agricultural land ownership is one hectare with productivity of seven tons of dry grains per hectare, farmers could make Rp28 million per hectare on every planting season. "The assumption is that the price of dry grain is Rp4,000 per kilogram," he said.

Out of Rp28 million, Suswono estimated production cost of Rp7 million, which makes the farmers benefit Rp21 million on every planting season. "If it is per month, every farmer receives Rp5 million per hectare," he said.

Another proposal is that the Rp18 trillion budget is used to import livestock breeds such as cattle given to farmers. Their manure can be used for organic fertilizer and restoring soil fertility. "That’s why, the budget for subsidized fertilizer should be lifted because it is not effective," said the minister.

UKKY PRIMARTANTYO