How to Respond the Sky Rocketing Price of Hot Pepper
The sky rocketing price of chili should be responded carefully. Some of the communties are getting panic with such condition even the President, Mr. Susilo Bambang Yudhoyono, paid attention by putting chili prices to his meeting agenda.
`In the headlines of the news media, the increased of chili price has reduced the purchasing power of the communties. Therefore, they dicided that chili price was the scapegoat for the declined of purchasing power. Though it was the main point.
The statement was stated by Dr. Ir. Nunung Kusnadi, Chairman, Department of Agribusiness, Faculty of Economics and Management Bogor Agricltural University, as the resource person in the Evening Dialogue at RRI Bogor, 11 January 2011.
How should we react to it, of course we should see the reason why the price of the commodity had soared. Depending on to whom we’ll ask the questions, if we ask such question to chile merchants, they will give simple answer, “the price from the wholesalers has gone up; then, the wholesalers answer that the supply of chili to them has dropped; finally, we ask question to farmers whether they fail to harvest? With the sky rocketing chili prices, is it profitable for farmers?
If the main reason is low of supply, then, according to Dr. Nunung, we should support farmers, especially the government’ supports. "If we plan sustainable and stable production, we will be able to stabilize supply and demand, except on major holidays where prices are very fluctuated. The essense of all, the production stability requires proper information such as the distribution of production areas. The information of areas which are booming in chilli products should be informed to other which are in demand, thus, the supply and demand will be implemented and farmers products won’t be idle, "he said
In addition, our homework is to improve the bargaining position of farmers in the economy. The fact that most of our farmers are small size farmers, their status cause them such condition. One of the solution, we have to improve and to organize them properly, to institusalize the farmer groups such as a cooperation to enable them access to markets and utilize the appropriate technology, as well as to access the information easily. (Wied).
