Salt absorption not ideal

KOMPAS/ABDULLAH FIKRI ASHRI

Salt produced by local farmers is piled up in a warehouse in Kapetakan, Cirebon regency, West Java, on Monday (18/2/2019). Salt farmers complain about a fall in the price of salt caused the low demand in local markets.

CIREBON, KOMPAS –  Salt farmers in West Java have yet to enjoy the yield of their harvest as expected because salt absorption has been low. Thousands of tons of salt linger in piles and face the threat of going bad.

Salt farmers and traders in West Java need higher salt prices, which are currently far from ideal even though the harvest ended around two months ago.

This can be seen around the coast of Losari to Kapetakan, Cirebon regency, West Java, and the coast of Kandanghaur and Losarang, Indramayu regency. Salt piles line up farmers’ ponds and warehouses. The salt that has been packed in sacks is left piled under a tarpaulin on the side of the road. Salt made in Cirebon is usually sold for consumption, fish salting, leather tanning and textiles in a number of areas in West Java.

At present, the farm gate price of grade 3 quality salt is Rp 700 (5 US cents) per kilogram, not including transportation costs to warehouses and packaging. In fact, during harvest season, the price is Rp 850 per kg. Among traders, the price of ready-for-transport salt is Rp 850 per kg for grade 3 and Rp 1,000 per kg for grade 1. In September 2018, the price of salt was Rp 1,100 to Rp 1,200 per kg in the warehouse.

“This is unusual. When the harvest season is over, the salt price should go up because no one is producing. Now, prices have gone down, and salt is still not selling well,” said H Sirajudin, 80, a salt farmer in Rawaurip village, Pangenan district, Cirebon, last week.

Around the pond was a pile of about 20 tons of salt covered in tarpaulin.

“My salt has not sold for two months. Usually in February, there are many who buy. If it continues, it is certain that 5 quintals of salt will be damaged,” said Sirajudin, who was unable to rent a warehouse due to limited capital.

He hopes that his grade 3 salt stock can be sold immediately at a good price, above Rp 800 per kg. He needs capital to process the land during the dry season. Moreover, he must prepare Rp 5 million for the cost of renting a 1-hectare plot of land.

Such conditions, he said, would force farmers to sell their salt at low prices to traders.

Salt trader Oman Abdurahman, 50, of Cirebon said he was unwilling to buy the farmers’ salt because he still has 500 tons of salt at his warehouse.

Nano Suwarno, 40, a salt farmer and a trader in Losarang, expressed the same concern.

“Only 30 percent or 100 tons of my salt stock has been sold. Usually, I can sell about 300 tons,” he said.

During the harvest season last year, he bought salt at Rp 900 per kg from farmers. After transporting and storing the salt in a warehouse, he sold it for Rp 1,200 per kg. However, the average asking price at the moment is Rp 900 per kg.

“That means I lose Rp 300 per kg. In fact, the price of salt was Rp 3,000 per kg in 2017,” he said.

Cannot compete

The import of 3.7 million tons of industry salt was partially to blame for the low absorption of the farmers’ salt.

“The imported salt is cheaper. Australian salt is sold for Rp 700 per kg. Local traders like me who sell the salt for Rp 900 per kg, would suffer a loss [selling Rp 700 per kg],” said Hendra, a salt trader in Losarang.

On the other hand, the dry season produced an abundance of salt. In Cirebon, salt production reached 483,000 tons, higher than in 2015 when Cirebon was named the highest salt producer nationwide with an output of 440,503 tons. According to the Fisheries and Maritime Affairs Ministry, salt production was at 2.7 million tons as of December. In 2017, production reaching 1.11 million tons.

Indonesia Salt Farmers Association West Java branch chairman Mohammad Taufik said there are around 57,513 tons of farmers salt in Cirebon and Indramayu. That amount excludes salt stored at traders’ warehouses.

“The absorption is not optimal because farmers’ salt does not meet the quality of industry salt,” he said.

Cirebon Fisheries and Maritime Affairs Office empowerment head Yanto said most of the farmers salt has a natrium chloride content of under 94 percent. This makes it difficult to be absorbed by the industry.

“From 483,000 tons of salt last year, only 20 percent is of good quality,” he said.

The low quality of farmers salt is because it is processed in dirty ponds that are not covered with tarpaulin. This mixes the salt with dirt, affecting its quality.

At the same time, salt farmers want to harvest immediately to get money. Also, they have to rush given the fact that most salt farmers rent their pond. (WIN/IKI)