"The signing of a cooperation agreement is to cut the excessive supply chain. If this pattern is successful, we will start it in major cities which influence inflation rate," Trade Minister Enggartiasto Lukita said here on Monday.
Through the cooperation the supply chain from farmers to consumers can be reduced to four points from eight points.
The cooperation will also enable farmers to directly sell their products to the markets, such as the National Commodity Market, and city-owned market operator PD Pasar Jaya and the National Logistics Agency (Bulog); he said.
The lengthy supply chain from farmers to consumers has led to high selling prices because of delinquent distributors to play the game with prices, he said.
Because of that, consumers suffer losses due to high selling prices, while at the same time farmers cannot make fair profit, he said.
Agriculture Minister Amran Sulaiman praised the performance of the Trade Ministry that has developed supply chain.
"This can curb inflation rate and improve farmers welfare and increase purchasing power of consumers. If this is implemented nationwide, God willing farmers welfare will increase," he said. (WDY)
