Jakarta (ANTARA News) - Indonesian seeds industry has urged the government to restore its policy on seeds subsidy that has been revoked and replaced with free distribution of seeds.

Chairman of the Indonesian Seeds Association (Asbenindo) advisory council Herman Khaeron said here, Tuesday, the policy to revoke seeds subsidy has become a disincentive move for the industry, which could disrupt development of national food sector.

"The government should give an incentive for superior seeds development, and not impose a disincentive policy. This policy (to revoke seeds subsidy) would discourage seeds producers and in the end, production targets would be disrupted," he said.

Herman who is also chairman of the Indonesian Seeds Society (MPPI) said, previously seeds subsidy has reached Rp1.3 trillion and such a favorable policy should be maintained.

He pointed the country`s success to reach food self-sufficiency in 1984, from its previous position as rice net importer, with the support of the government`s seeds policy that could encourage seeds producers.

"With adequate incentive, it would bring up new business in seeds industry," Herman said.

The association has sent its proposal to the Agriculture Minister, Finance Minister and National Development Planning Minister, to restore the seeds subsidy.

Meanwhile, Chairman of Asbenindo Ricky Gunawan said, the government should involve the association in seeds procurement, both in distribution of free seeds and in seeds subsidy.

"Asbenindo should be involved both in the procurement planning process and in its implementation," Gunawan said, adding that almost all seeds producers in Indonesia are members of the association.

The Agriculture Minister Amran Sulaiman in early August said that the government has revoked seeds subsidy, after it found that only 2 percent of farmers have enjoyed the subsidy in 2015.

The government has replaced the subsidy with free distribution of seeds, including rice, corn and chili, for farmers across the country.

Reported by Subagyo
(S022/a014)

Reporter: antara
Editor: Heru Purwanto
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