Cilacap, C Java (Antara Bali) - Agriculture Minister Andi Amran Sulaiman has called on farmers to sell their rice production to the State Logistic Agency (Bulog) to avoid further losses due to the commoditys declining price.
"Alhamdulillah (thank God), during our five-day visit they (farmers) have agreed to sell rice to Bulog," Andi said on the sidelines of rice harvesting in the Wanareja village, Cilacap district, on Friday.
The minister was conducting a working visit to some regions in East Java, Central and West Java.
Bulog, he said, would buy farmers unhusked rice at its floor price of Rp3,700 (US$28 cents) per kilogram (kg), higher than the commoditys market price at Rp3,000 to Rp3,400 ($22 to 25 cents) per kg.
"We bought it (the unhusked rice) at Rp3,700 per kg. This is Presiden Jokowis order, not to let farmers bear the losses," he added.
He reiterated that the government would maintain the unhusked rice price and not let it fall below its floor price of Rp3,700 per kg.
Andi referred to the Agriculture Ministerial Regulation No 3/2017 on the guidance for purchasing farmers unhusked rice, which is a supporting regulation for Presidential Regulation No 20/2017 on the requirement to purchase farmers unhusked rice.
He further said the government would keep farmers profit. "If they can have profits, they will continue the production. But if they suffer losses, it will be difficult for them to continue."
The minister has also asked farmers to participate in the paddy farming insurance program (AUTP).
Based on existing regulations, each farmer would pay an insurance premium of Rp180,000 per hectare. As the government subsidizes 80 percent of the premium, farmers would pay only Rp36,000 per hectare per planting season.
With the program, if 75 percent of their crops are damaged due to flooding, a dry season, pests or disease attacks, farmers can request Rp6 million to cover losses in every hectare of their fields.
"In Bojonegoro and Tuban, farmers received some Rp5 billion as their fields were destroyed by the flood. The insurance company paid Rp6 million per hectare.
During his visit to Wanareja village, the minister also oversaw initial paddy planting using a transplanter, harvesting and unhusked rice buying by Bulog.
The minister also provided agriculture machinery to five farmers groups. (WDY)
