Traders tend commodities they offer at Petisah Market, Medan, North Sumatra, Friday (12/5). Ahead of the Ramadhan fasting month, the prices of onions, red chili and tomatoes escalate.
JAKARTA, KOMPAS – The prices of several basic commodities in South Sulawesi, Ambon, Semarang, Blitar, Bandung and a number of other places in Indonesia have risen uncontrollably. The price of garlic has reached Rp 60,000 per kilogram and has been followed by increases in the prices of other commodities, such as red onions, eggs, chicken meat and chili.
Observations at traditional markets, such as Terong and Buakana Market in South Sulawesi and a number of supermarkets on Monday-Tuesday, showed the price of garlic, which had previously been Rp 30,000-Rp 35,000 per kilogram is now Rp 60,000 per kilogram. The price of red garlic has risen to Rp 45,000 per kg from Rp 35,000 per kg.
It is the same story in Ambon, Maluku. Ahead of Ramadhan, prices have started to rise. At Mardika market, Ambon, on Tuesday, the price of garlic had risen to 58,000 per kg from last week’s price of Rp 56,000 per kg, and is predicted to rise to over Rp 60,000 per kg. The same is true of red garlic, which last week was priced at Rp 35,000 per kg, but has now increased to Rp 37,000 per kg.
Chili price rises
In Semarang, Central Java, the prices of basic commodities have witnessed a similar trend. The prices of red chili and eggs have increased by up to 20 percent. Not only is demand increasing, there is also a decline in supply from distributors at the market trader level.
Based on a Kompas observation at Jatingaleh market, Semarang, on Tuesday, Mujinah, 65, a crop seller, said the price of curly red chili at the retail level was now Rp 31,000 per kg, up from its usual price of Rp 25,000 per kg.
The cause of the price hike includes the decreased supply of curly red chili from Bandungan, Semarang regency. Although an increase in price is a normal occurrence ahead of the fasting month, Mujinah still hoped the price hike would be controlled.
Another commodity, which has also seen a price hike in the last three days, is eggs. At Peterongan market, Semarang, the price of eggs has risen from Rp 18,000 per kg to Rp 22,000 per kg. “Every day the increase is by Rp 2,000,” said Yani, 45, a seller of basic commodities at the market.
A basic commodity price hike has also occurred in Surabaya, East Java with increases in the prices of eggs and chicken meat, as well as rice. According to a Kompas observation at Wonokromo market, the price of garlic is Rp 50,000 - Rp 55,000 per kg. Meanwhile, the price of eggs has reached Rp 22,000 per kg and the price of chicken meat is at Rp 30,000 per kg.
There has been a Rp 200 increase in the price of rice per kg for all quality of rice while demand has risen by 20 percent. “Now at least 500 kg can be sold. In normal conditions, only 200-300 kg (are sold),” said Sudarno, head of the Bendulmerisi rice sellers community.
Meanwhile, the price of garlic has fallen by Rp 5,000 per kg from the initial price of Rp 60,000 per kg to Rp 55,000 per kg. There has been an abundant stock of garlic at Pabean market, Surabaya, in the last two days.
Chicken farmers in Blitar, East Java, said they are able to supply around 400 tons of eggs per day. The stock is thought to be sufficient to meet the needs of people during the fasting month and Lebaran period.
Deputy chairman of the Blitar National Farmers Association, Sukarman, said on Tuesday that in normal conditions, Blitar could produce 500 tons of eggs per day. However, he admitted there had been a decrease in the population of laying hens as a consequence of the low price of eggs two months ago.
The population of laying hens is estimated to have shrunk by 10-20 percent. Therefore, the number of laying hens has decreased from 15 million to 12-13.5 million. It is suspected that the decrease in production caused the price of eggs to climb from Rp 14,000 to Rp 18,000 per kg at the farmers’ level.
Reduced stock
Unlike eggs, which stocks remain in abundance, the stock of cayenne pepper in Banyuwangi has reduced. According to Wongsorejo district farmers group head Ahmad Jamali, the stock of chili in Wongsorejo is low because there has not been a chili harvest in two and a half months.
According to a survey by Kompas, most of the fields owned by locals in Wongsorejo district, Banyuwangi, were planted with corn, not chili.
Meanwhile, in Bandung, West Java, the price of garlic has risen uncontrollably. The price of garlic at a number of traditional markets in Bandung city has reached its highest level in five years. The supply has also not been as plentiful as in previous years.
“Now the price is Rp 55,000-Rp 60,000 per kg, when previously the price of garlic never touched Rp 50,000 per kg,” said Dwi Harianto, 42, a seller in Cihaurgeulis market, Bandung city.
Furthermore, Dwi also said the supply of red garlic from distributors had also declined. Previously he received 70 kg per week, but now only receives 50 kg per week.
Regulating trade system
Commenting on the uncontrolled price hikes, Trade Minister Enggartiasto Lukita said the government has prepared a regulation to regulate the trade system of garlic imports. Currently, the import of garlic is free and does not require an import recommendation from the Agriculture Ministry or import permit from the Trade Ministry. This can potentially lead to garlic price speculation.
The upcoming regulation requires garlic importers, distributors and wholesalers to report their garlic stocks periodically. Garlic importers must also obtain a recommendation and import permit from the government.
“We will also control the price. This time, we will direct them to sell garlic at a maximum price of Rp 38,000 per kg as there is a rise in price of garlic imported from China. After that, the price of garlic cannot exceed Rp 30,000 per kg,” he said.
Domestic production of garlic is currently very low at around 20,000 tons per year. This has prompted Indonesia to import 480,000-500,000 tons of garlic per year.
