TEMPO.CO, Jakarta-The government plans to import 2,500 tons of shallots. The additional stock will be used to anticipate the increasing demand during the fasting month and Eid celebration.
"The extra supply will meet two-weeks of demand. It's just to control situation ahead of the Eid," Coordinating Minister for Economic Affairs Darmin Nasution after chairing a coordination food meeting in Jakarta, Tuesday, May 24, 2016.
According to Nasution, shallot prices have gone down in the last few days, but the decline was not significant. He said that the price hikes are triggered by a lack of supplies at the farm level. "I've told Bulog to absorb everything from farmers," he said.
President Joko Widodo is paying serious attention to the soaring food prices ahead of the fasting month and Eid. Especially for shallots, last month he requested that prices to be kept below Rp25,000. Despite Jokowi's request, prices are still around Rp40,000 a kilo.
SOE Minister Rini Soemarno admitted that shallot prices are way too high. She received reports that shallots are currently sold for Rp41,000 per kilogram. Like Darmin, Rini also said that prices soared due to lack of supply.
Bulog's procurement director, Wahyu, said that there are only some 600 tons of shallots kept in Bulog's warehouses across the nation. This volume is far from the estimated needs for Eid and Ramadan, which is about 1,000 tons. "About 300 tons are on the way," he said.
On the contrary, Agriculture Minister Andi Amran Sulaiman said that there is enough food, including shallots, for June and July 2016.
The Minister's statement was corroborated by Hasan Kudri, chairman of the Kramat Jati Market's Shallot Association. Hasan said that there is an abundance of shallot supplies due to the recent harvest. He even claimed that prices have gone down to around Rp20,000 to Rp25,000 a kilogram.
Ngadiran, chairman of the Indonesian Market Traders Association, is not concerned with the government's plan to import shallot. What's important, he said, is for prices to go down.
"If it cannot lower the prices, than the government shouldn’t import. Just let prices go high, as long as the farmers are the one who enjoy it," he said. Ngadiran also said that there is no drastic decline of shallot supplies in markets. The problem is, prices from traders tend to be high.
The Trade Ministry's Directorate General of Domestic Trade recorded that shallot prices are around Rp42,603 per kilogram, slightly lower than last month's of Rp63,024.
In a number of cities, shallot prices are even higher. In Bengkulu for example, shallots are sold for Rp48,000 per kilogram. In Kupang, the price even reaches Rp50,000 a kilogram.
FAIZ NASHRILLAH
