Thursday, 14 Nov 2019

The government admits that there are few wrong predictions regarding the price of food two commodities


IllustrationIllustration - Some food commodities, especially spices such as chili and red onion, have experienced a surge in prices until this year's Eid. The government admits that there are few wrong predictions regarding the two commodities.

Coordinating Minister for Economic Affairs Darmin Nasution acknowledged that the price of chilli and shallots is still rising until Eid al-Fitr today.

He admitted this was beyond the government's expectation that the prices of these two commodities would decline as the harvest began.

"It seems that until the last week of May the price of chilli and shallots is still high, it is still rising. Even though I was hoping that when entering Lebaran it should have been harvested," Darmin said at his residence on Wednesday, June 5 2019.

Data from the National Strategic Food Price Information Center (PIHPS) website shows that the national average price of large red chili on E-1 Eid has reached IDR 65,350 / kg, while curly red chili penetrates IDR 61,500. 

Each of these chili commodities has skyrocketed 59.19% and 64.65% in just a week.

The red and green cayenne prices have also touched IDR  48,100 and IDR 42,950 per kilogram, each up 17.89% and 16.55% in the past week.

Meanwhile, Darmin said that the price of garlic had dropped in the last week of Ramadan thanks to imports. Therefore, he projects that this year's Ramadan and Eid ul-Fitr inflation will be in the range of 0.5-0.6%, not much different from previous years.

"It might be missed but my estimation is not far away. Is this high? Compared to the Lebaran month in previous years it was not high. But compared to normal months, it is certainly high because it is usually below 0.3%," he explained.

Previously, Chairman of the DPP of Market Traders Association throughout Indonesia (Ikappi) Abdullah Mansuri confirmed the price of chili had increased in the past week. He even said that the chili price increase could potentially occur until after Eid.

Because the increase in demand that continues to occur is not balanced with supply to the market because generally the chilli harvest stops during the Eid period.

"This was rather unique. In a number of cases in the past few years, after the Eid al-Fitr the price has increased more than 50%. Why? Because at Lebaran there are no people to harvesting," Abdullah told.

Abdullah explained, the stock of chili is indeed limited because it is not durable. For this reason, it is difficult for him to assume about the price of chili.







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