While reviewing food prices here on Wednesday, he said that the plan to build village cooperatives is an important step for maintaining the welfare of farmers across the country.
According to Adi, the step will provide support for farmers so that paddy prices remain stable, with village cooperatives buying the paddy. In this way, price declines, which are detrimental to farmers, can be avoided, he explained.
He further said that the village cooperatives are expected to have a positive impact on the agricultural sector, especially in keeping paddy prices stable and profitable for farmers in rural areas.
Furthermore, Adi emphasized that the plan to form the cooperatives is in the preparation stage.
He expressed optimism that with the presence of village cooperatives, farmers' paddy could be absorbed at the price determined by the government.
"Farmers' paddy prices will not fall because it will be absorbed by Red and White Village Cooperatives," he said.
The government has set the government purchase price for paddy at Rp6,500 (around US$0.39) per kilogram, effective January 15, 2025, for both purchases by government and private millers across Indonesia.
The Ministry of Cooperatives is ready to support the formation of 70 thousand Red and White Village Cooperatives to bolster the village economy and tackle various problems in rural areas.
Minister of Cooperatives, Budi Arie Setiadi, said in Jakarta on Monday that the basis for the plan to establish the cooperatives is to drive the economy from the village level.
Therefore, business entities in the form of cooperatives are needed to improve the welfare of rural communities through job creation and serve as aggregators for the absorption of various village products.
The minister explained that the cooperatives will be developed through three main approaches, targeting 64 thousand farmer groups who are ready to migrate to become subsidized fertilizer distribution cooperatives.
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Translator: Muhammad Harianto, Raka Adji
Editor: Primayanti
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