#club100|| The Cause of the Increase in Subsidized Fertilizer Prices Above the Official Price at Fertilizer Sellers in My Village

The Cause of the Increase in Subsidized Fertilizer Prices Above the Official Price at Fertilizer Sellers

The Cause of the Increase in Subsidized Fertilizer Prices Above the Official Price at Fertilizer Sellers

To know and understand well and thoroughly the factors causing the increase in the price of subsidized fertilizer above the official price in Alue Bungkoh, Pirak Timu District, North Aceh Regency, i have interviewed with several informants related to both shop owners selling fertilizers and agricultural equipment, shop workers. and also some farmers who buy fertilizer.

I also directly observes the distribution and sale of subsidized fertilizers in Alue Bungkoh, Pirak Timu District. Based on the author's interviews with research informants and observations, it can be concluded that the factors causing the increase in subsidized fertilizer prices above the official price in Alue Bungkoh, Pirak Timu District are as follows:

a. High Demand for Fertilizer

Based on my interview, one of the factors causing the increase in subsidized fertilizer prices above the official price set by the government or often known as the highest retail price (HET) is the high demand for subsidized fertilizers, especially urea, SP-36 and NPK. According to Mr. Harun as the owner of UD. NK Tani who sells fertilizers, pesticides and agricultural equipment in Alue Bungkoh, the high demand for subsidized fertilizers has been felt in recent years, especially in the Pirak Timu sub-district because the community has understood the importance of fertilization and the increasing number of rice fields that get water from technical irrigation so that residents has been able to plant rice twice a year which of course results in high fertilizer requirements.

As a result of the high demand for fertilizer, the stock of fertilizer runs out very quickly, so people sometimes queue to buy it, even when the fertilizer transport truck arrives in less than an hour, the farmers who have been waiting for a long time have bought it. As a result of such conditions, many residents are willing to pay a higher price than the official price, such as for urea fertilizer per bag of HET, which is Rp. 90.000, -, but many residents are willing to deposit their money in advance of Rp. 100.000,- so that when the supply of fertilizer comes, they get the fertilizer they need. The actions of buyer farmers who dare to pay above the official highest retail price (HET) set by the government are certainly not rejected by fertilizer sellers

b. Use of Subsidized Fertilizer for Plantations

The misuse of subsidized fertilizers that should be used for farmers in rice cultivation in paddy fields but is used for plantation fertilizers has also led to an increase in the price of subsidized fertilizers above the official price in Alue Bungkoh, Pirak Timu District, North Aceh Regency.

According to my interview with Mr. Soleh as the owner of the Tani Jaya shop that sells fertilizer in Alue Bungkoh, the factor of the large area of ​​oil palm plantations in Pirak Timu District has resulted in high demand for fertilizers, especially urea and NPK which must be applied to oil palm twice. in one year, on the other hand, subsidized fertilizers are prohibited from being sold to plantations so that many oil palm plantation owners get around this provision by buying subsidized fertilizers at a price higher than the official price set by the government.

The choice of plantation owners certainly makes more sense to them than having to buy non-subsidized NPK fertilizer. This is as stated by Mr. Razali, a resident of Gampong Alue Rime who owns three hectares of oil palm plantations which he must fertilize with NPK fertilizer. He gave an example, namely Garuda Mas NPK which is a non-subsidized compound fertilizer whose price reaches Rp. 200.000,- in a 50 Kg bag, he chose to buy Phonska NPK fertilizer which is a fertilizer subsidized by the government at a price of Rp. 140.000,- per sack size 50 Kg.

This price is higher than the highest retail price (HET) for Phonska NPK fertilizer set by the government, which is Rp. 115.000,- per sack of 50 Kg size, however, he can still save even though he buys above the official price compared to buying non-subsidized fertilizer which reaches Rp. 200.000,- in one 50 kg bag.

c. Fertilizer scarcity

Based on my interview with Mr. Imran who works at UD. NK Tani Alue Bungkoh, Pirak Timu District, the increase in fertilizer prices above the official price set by the government with the highest retail price benchmark (HET) was also due to the scarcity of goods and the difficulty of getting fertilizer supplies from distributors, even though at the same time farmers, especially in Pirak Timu District, were start the growing season so it requires a lot of fertilizer.

According to him, fertilizer shortages usually occur within a few weeks to a month, even though the fertilizer seller has sent some money to redeem the subsidized fertilizer from the distributor, it still takes one or two weeks for the redeemed subsidized fertilizer not to be sent from the distributor.

According to Mr. Mukhtar, who is the head of the Sare Makmu farmer group, whose address is Gampong Geulumpang, Pirak Timu District, fertilizer shortages occur almost every time the planting season begins, not only in Pirak Timu District, but in almost all areas in North Aceh District. According to him, the government should be able to anticipate farmers' fertilizer needs by providing sufficient stock of fertilizer, especially since the scarcity of fertilizers occurs evenly in almost all areas of Aceh and even in other provinces and has often received the spotlight of the mass media, television and also members of the House of Representatives.

As the head of the farmer group, at the beginning of each planting season, he reports the amount of fertilizer needed and the occurrence of shortages to the Department of Agriculture and Food Crops, North Aceh Regency, but there is still a shortage of subsidized fertilizers. As a result of the scarcity, of course, the price of subsidized fertilizer will rise and be sold above the official price due to the limited stock of fertilizer.

d. Increase in Transportation and Distribution Costs

To reach farmers, especially those who live in Pirak Timu District, North Aceh Regency, subsidized fertilizers undergo a distribution and transportation process from the factory where it is produced, namely PT. Pupuk Iskandar Muda (PIM) located in Krueng Geukuh, North Aceh Regency for urea fertilizer and PT. Petrokimia Gresik in East Java for NPK and SP-36 fertilizers.

The process of distributing fertilizers and increasing transportation costs due to the increase in fuel prices and other factors have resulted in the price of subsidized fertilizers also experiencing a greater increase than the official price set by the government.

The above conditions were conveyed in my interview with Mr. Bono who is the owner of the Jaya Tani Shop which sells fertilizers and various other agricultural equipment needs in Alue Bungkoh, Pirak Timu District. According to him, apart from the high cost of transporting fertilizers due to rising oil prices.

The increase in fertilizer distribution costs was also due to the increase in the costs of other components in the fertilizer distribution process, namely loading and unloading costs from the factory to trucks and also loading and unloading costs from trucks to warehouses belonging to fertilizer sellers and also the cost of depreciation of the scales due to long storage.

According to Tgk Marzuki, or who is often called Abati Teupin U as a religious figure in Pirak Timu District, regarding the increase in subsidized fertilizer prices above the official price set by the government, this must be seen from the causal factors, if there is an element of intention from the fertilizer seller by hoarding or stockpiling fertilizers. selling to unauthorized parties is a sin, whereas if there is a price increase that is not caused by traders, then it is the responsibility of the government to ensure that the prices of subsidized goods, including fertilizers, are in accordance with those determined by the government.

From the description of the results of the research that i have mentioned above, it can be concluded that the factors causing the increase in the price of subsidized fertilizer above the official price set by the government that occurred in Alue Bungkoh, Pirak Timu District, North Aceh Regency were the high demand for fertilizers, the use of subsidized fertilizers. for plantations, fertilizer scarcity and rising transportation and distribution costs.

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