Dedeh, 45, harvests red chili on her plantation in Cimeyan, Bandung regency, West Java, Monday (17/7). Even though the quality of the chili is good, the selling price of red chili in the market has plummeted to as low as Rp 5,000 per kilogram. Previously, farmers had enjoyed a selling price of Rp 30,000 per kilogram.
Falling prices of chilies and shallots reflect the government’s inability to control production and distribution of the commodities.
After the decrease in chili prices, now is the turn of shallot prices. Farm-gate prices on Wednesday tumbled to Rp 6,000 per kilogram, far below the government-set reference price of Rp 15,000 per km of the wet konde category. The two vegetables are among 11 food commodities for which the government is in charge of maintaining price stability at the producers level and stable supplies for consumers.
Fluctuation in agricultural product prices is common for local food products, as output is still heavily impacted by seasonal effects. Post-harvest handling, such as the storing of perishable agricultural produce like chilies and shallots,remains inadequate.
Farmers say the government has encouraged them to grow chilies and shallots in order to curb fluctuation in their prices, which tend to jump on religious holidays.
Unfortunately, the rise in production is not followed by adequate post-harvest handling and distribution. The price decrease caused by the oversupply means losses for farmers, especially in the production centers of Java. Efforts to regulate planting periods to make farmers take turns in harvesting are ineffective, because farmers are free to plant crops as they please.
If the government continues to use a reactive approach in tackling commodity price fluctuation, similar poor results can be expected for other products.
The government\'s approach needs to change. Instead of paying attention only to the production side, it must include the post-harvest handling of commodities. Chilies and shallots as fresh commodities need cold storage or must immediately be processed into food products.
Post-harvest handling, including the distribution of commodities, requires a cross-sectoral effort. The duty of the government is to provide an investment climate that encourages the growth of the processing industry and inter-regional trade, even exports.
What has not been properly handled by the government is the standardization of quality and reference prices. The weight of shallots, for example, can vary by 30 percent depending on the harvest time. It is not appropriate to apply nationwide price standards. Production costs and yields differ from region to region. One aspect that requires attention are indications of degrading soil in Brebes, Central Java, resulting from the excessive use of fertilizer and pesticides, so the competitive advantage of Brebes is also falling.
Handling food commodities is related to many micro problems. However, unless properly addressed, it will cause producers and consumers to suffer losses, reduce the national competitive advantage and even lead to unnecessary commotion.
