Because of the low price, business 'sweet' so bitter

Hundreds of sugarcane farmers from various regions in Indonesia such as Jember (East Java), Cirebon (West Java), and Deliserdang (North Sumatra), came to Jakarta on Monday. They asked to meet with government representatives, to discuss sugar cane issues.

The main one, they asked the government to set a minimum sugar price of Rp 11,500 per kilogram. This, said Chairman of the Association of Indonesian Smallholder Sugarcane Farmers (APTRI) Soemitro Samadikoen, is the most reasonable price considering the cost of sugar cane production this year reached Rp 10,600 per kilogram

"If the price is too good. There is still a little profit, "Soemitro said during a demonstration in front of the State Palace. Farmers can not enjoy the profit when Bulog is only willing to buy sugar cane harvest Rp 9,700 per kilogram.

This year, sugarcane farmers are threatened again can not enjoy the sweetness of the sugar industry. In addition to low sugar prices, farmers also have to face a low yield. Rendement is the content of sugar content in the sugar cane, expressed as a percentage. For example, when the yield is 10 percent, it means that from 100 kilograms of sugar cane rods will be obtained sugar as much as 10 kilograms.

This year, the yield of sugar cane only ranges from 6.5 to 7.5 percent. When compared with the rest of Thailand's sugar cane which amounted to 14 percent, of Indonesia is far behind. This low rate of yield occurs because local sugar mills are very outdated equipment.

According to Soemitro, SOE Minister Rini Soemarno once promised the yield of sugar cane at least 8.5 percent to sugarcane farmers as compensation of the government to import raw sugar of 381 tons for industrial sugar of three SOEs: PTPN, RNI and Bulog.

In general, mention Soemitro again, farmers face unhealthy competition with imported sugar, both from the side of consumer and consume the consumer. This, he said, makes sugar prices fall sharply to an average of Rp 9,000-9,500 per kilogram.

One of the sugar cane farmers from Jember, Budi Susilo, said he is spending big money this year. Budi who planted 18 hectares of land must spend up to Rp 20 million for land lease, and Rp 10 million again for the processing of land and fertilizer. So, "If the selling price is below Rp 11,000 we have big loss," he said.