Chili Price Hike Caused By Limited Supply: Trade Minister

Denpasar (Antara Bali) - The current increase in the country`s chili price was caused by limited supply following a dip in farmers` enthusiasm to cultivate the commodity, Trade Minister Rahmat Gobel stated here on Monday.

"The national stock is very limited because the farmers` interest to cultivate chili has lately dropped after they experienced a harvest failure," he noted on the sidelines of a national meeting of the Association of Indonesian Businesswomen (Iwapi).

The Iwapi meeting was attended by around a thousand participants including Minister of Women`s Role Affairs Prof. Dr Yohana Susana Yambise and Iwapi General Chairperson Nita Yudi along with several officials from the concerned ministries.

Rahmat Gobel explained that the shortage in chili supply must be overcome by expanding chili plantations and implementing technological innovations in land toiling, plants` care, and fertilizing and harvest.

He stated that the new government under President Joko Widodo would continue to encourage farmers to cultivate chili and transform the commodity into industrial products to increase its added value for farmers.

He said if the commodity is transformed into industrial products, it would further benefit farmers, traders, and other parties as the product can be preserved for a longer time.

The minister noted that the shortage in chili supply has led to the increase in the price of the commodity.

The taste of chili produce differs across regions such as from Sumatra, Kalimantan to Sulawesi, thereby proving to be more beneficial to the farmers if they can process it into products for wider markets and exports.

With regard to that, he called on Iwapi members to play a bigger role in developing agricultural products, such as chili, which have huge potential in the country.

"We hope Iwapi that has signed a memorandum of understanding for cooperation with the ministry of trade would follow up the deal seriously and meet the target," he added. (WDY)