REPUBLIKA.CO.ID, JAKARTA -- Minister of Agriculture, Suswono proposed that fertilizer did not need to be subsidized. The reason, many obstacles are still found in fertilizer distribution to consumers, started from the sale per package, also the high price of subsidized fertilizer.

The result, farmers often delayed their planting activities. Fertilizer becomes an important and strategic factor in increasing crop productivity. Government has poured 15.8 trillion IDR budget for subsidized fertilizer last year.

"If such moral hazard continues like this, I think fertilizer does not need to be subsidized, leave it to market price," Suswono said recently.

Ministry of Agriculture found some obstacles. First, between allocation and fertilizer requirements for farmers is not appropriate. Stock of urea is often depleted. The impact, fertilizer price to consumers is far over the highest retail price.

Suswono said that cost of fertilizer reached 14 to 25 percent of total farming costs. However, farmers still have to buy fertilizer in package system. This system is not justified in fertilizer distribution. If farmers need only urea, so they must buy urea only.

Vice Chairman of Commission IV at House of Representatives, Herman Khaeron said that farmers should buy urea for 1,800 IDR per kilogram (kg). However, in the last few months, the agent sold urea for 2,000 IDR per kg to farmers. He asked government to evaluate the productivity of subsidized fertilizer.

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