Extreme Weather Threat, Indonesia’s Food Commodity Trade Sector Should Be Cautious of Crop Failure and Price Spike

Extreme Weather Threat, Indonesia's Food Commodity Trade Sector Should Be Cautious of Crop Failure and Price Spike

Writen By:

Christina Vania Winona

Website Content Manager, Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Nabila Asysyfa Nur

Website Content Manager, Center for World Trade Studies Universitas Gadjah Mada.

Illustrated By:

Marsha

Marsha, Graphic Designer, Center for World Trade Studies Universitas Gadjah Mada.

The erratic weather has poorly affected the dynamics of agriculture in Indonesia. A number of conventional farmers––who rely on chemical inputs, especially pesticides and chemical fertilizers––in several parts of Indonesia, one of which is in Gorontalo Province, have to lament the fate of crop failure losses because they cannot determine and predict when it is dry and when it rains (2/2/22). Apart from farmers in Gorontalo Province, several farmers in Pangandaran Regency also complained about poor harvests. One farmer from Cileuncang, Suryaman (45), complained about the quality of his rice harvest with very small and abnormal grains as a result of his rice fields being frequently flooded (6/2/22). The extreme rain was also complained about by a farmer from Cijulang, Wawan Kurniawan (38), who received poor yields (6/2/22).

With uncertain conditions, these farmers had to delay planting and experience crop failures. Currently, conventional farmers are faced with a lack of information on weather forecasts and technological stagnation which then contributes to the losses they experience. Conventional farmers are used to relying on astrology to determine their farming activities, but with climate change troubles them to predict the weather. The inability to determine the weather then results in the death of horticultural crops and corn and the possibility of pest attacks. Apart from horticulture and maize, the main food sector, such as rice, was also negatively affected.

The extreme weather and crop failures experienced by the farmers have a negative impact on food prices which are increasingly soaring. According to the Head of Research Centre for Indonesian Policy Studies (CIPS) Felippa Ann Amanta, climate change can disrupt food availability and threaten food security. Reduced production levels can lead to an increase in food prices which has an impact on food access, affordability, and utilization. One of the increases in food commodities was found in Makassar, especially for cayenne pepper and shallots. In the case of cayenne pepper, the selling price of the commodity reached Rp. 70.000,00 per kilogram, with an increase of Rp. 20,000.00 since the previous week (9/2/22). Meanwhile, shallots are sold at a price of Rp. 40,000.00 per kilogram, with an increase of Rp. 5,000.00 per kilogram in the previous week (9/2/22). In addition, in January 2022, the price of rice on a national scale increased. The average price of premium quality rice in the mills reached Rp. 9,824.00 per kg, an increase of 1.57 percent compared to the previous month, while the medium quality rice in the mills reached Rp. 9,381.00 per kg, an increase of 2.77 percent. The low harvest in November to December 2021 and the hydrometeorological phenomenon in early 2022 were the causes of the increase in rice prices.

Seeing this spike, the National Police's Food Task Force (Satgas) predicts that the prices of basic necessities––including red chili peppers and shallots––will increase ahead of the month of Ramadan and the celebration of Eid al-Fitr. Apart from the surge in demand for imported commodities, bad weather also contributes to the decline in supply. To deal with this, as quoted from the Chairman of the Association of Indonesian Chilli Champion, Tunov Mondro, the government must take concrete steps and interventions to overcome the skyrocketing food commodity prices.

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