Shallot and Garlic Shortage Caused by Cartel Practice

Leo Wisnu Susapto, Mahinda Arkyasa

Yasin Taufik, Secretary of the Directorate General of Food Products Processing and Marketing (PPHP), stated that shallot and garlic prices will not be affected by bad crops or by the supply and demand theory. As a result, current shallot and garlic shortage that resulted in a price increase has raised some concern.

Fadli Zon, Secretary General at the Indonesian Farmers Union (HKTI), and Enny Sri Hartati, Director of Institute for Development of Economics and Finance (INDEF), stated in a discussion on Saturday (16/3) that the shortage was purposely caused by some stakeholders.

Responding to Yasin’s statement, Enny questioned the reason for the shortage if it was not caused by a bad harvest or supply and demand.

“If there are no distortions in demand or price, then why do we experience severe shortage and up to 100% price hike in the last two weeks?” she wondered.

Fadli also conveyed his suspicious that shallot and garlic shortage was orchestrated by profit-oriented stakeholders.

He concluded that he is concerned that shallot and garlic importers are involved in the cartel practice and that the Minister of Agriculture is also possibly involved.

(jt)

Leo Wisnu Susapto, Mahinda Arkyasa

Yasin Taufik, Secretary of the Directorate General of Food Products Processing and Marketing (PPHP), stated that shallot and garlic prices will not be affected by bad crops or by the supply and demand theory. As a result, current shallot and garlic shortage that resulted in a price increase has raised some concern.

Fadli Zon, Secretary General at the Indonesian Farmers Union (HKTI), and Enny Sri Hartati, Director of Institute for Development of Economics and Finance (INDEF), stated in a discussion on Saturday (16/3) that the shortage was purposely caused by some stakeholders.

Responding to Yasin’s statement, Enny questioned the reason for the shortage if it was not caused by a bad harvest or supply and demand.

“If there are no distortions in demand or price, then why do we experience severe shortage and up to 100% price hike in the last two weeks?” she wondered.

Fadli also conveyed his suspicious that shallot and garlic shortage was orchestrated by profit-oriented stakeholders.

He concluded that he is concerned that shallot and garlic importers are involved in the cartel practice and that the Minister of Agriculture is also possibly involved.

(jt)

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