Agriculture Minister Calls On Bulog To Purchase Farmers' Maize

Jakarta (Antara Bali) - Agriculture Minister Amran Sulaiman has urged state-owned logistics board (Bulog) to purchase the farmers' maize at Rp3,150 per kilogram (kg) in a bid to maintain the commodity's price during the grand harvest season.

The minister made the appeal in response to the complaints received from farmers while witnessing the sale of their maize to the Fodder Companies Association (GPMT) in Pesawarn, Lampung, on Thursday.

The farmers complained that the traders only purchased their maize at Rp2,300 per kg.

"We urge Bulog to purchase the farmers' maize at Rp3,150 per kg based on the government's regulation," the minister stated.

However, the minister emphasized that the government's sanctioned price should be imposed on dry maize.

"If the maize is wet, Bulog can buy it at Rp2,600 per kg," he noted.

Sulaiman pointed out that the purchase of the commodity by Bulog is intended to set a regular price in the market, so that it will raise the price of the farmers' maize based on the government's fixed price of Rp3,150 per kg.

The minister remarked that the farmers had complained of the low price of Rp2,300 per kg offered by the traders at the farmers' level. However, they sold it to companies at Rp3,500 per kg, gaining a profit of Rp1,200 per kg.

"So far, the farmers have only gained a profit of 20 percent, while the traders enjoyed 80 percent," the minister stated.

Sulaiman had earlier witnessed a maize grand harvest on a 160-hectare plot of land in the village of Tanjung Agung, South Lampung District. PT Vasham Kosa Sejahtra and PT Japfa Comfed have partnered with the local farmers for cultivating maize at the plantation.

On the occasion, the minister and GPMT agreed to not import maize in 2017 as long as the farmers are able to produce the commodity.

Sulaiman noted that the government has committed to increasing maize production on a national scale, higher than that in 2016.

He affirmed that the government has prepared several programs to increase maize production.

"We have included South Lampung District in the list of regions where we hope to boost maize production. Moreover, South Lampung has become a maize production center of Lampung Province," he added. (WDY)