Selasa, 09 Desember 2008

Hybrid rice, comment to State Budget

Hybrid Rice, Indonesia
State Subsidising Corporates, mass-scaling to farmers with environment-friendly

Edited by Riza V. Tjahjadi

(..) di tengah situasi ekonomi dunia yang tidak menentu ini, sesungguhnya kita patut bersyukur, karena kondisi pangan negara kita relatif lebih baik dari banyak negara lain. Mungkin fakta ini belum banyak diketahui masyarakat. Oleh karena itu, pada kesempatan ini, saya ingin menyampaikan kepada Sidang Dewan yang terhormat, dan kepada
seluruh rakyat Indonesia, insya Allah, pada tahun ini kita
kembali mencapai swa sembada beras. Ini adalah untuk pertama kalinya sejak masa
Orde Baru, produksi beras nasional lebih tinggi daripada konsumsi beras kita.
Itulah sebabnya, juga untuk pertama kali sejak masa Orde Baru, harga beras di
dalam negeri lebih rendah daripada harga beras internasional... Pemerintah telah menetapkan bahwa stok beras nasional ditingkatkan hingga mencapai 3 juta ton, dari sebelumnya hanya
1 juta ton. Barulah setelah itu, kita berbicara tentang kemungkinan ekspor beras.

(..) in the current uncertainty of the world economic, actually we should make praise, because the country food condition relatively good compare to other countries. Maybe this fact is not much recognised by people at large. Therefore in this opportunity I want to address to honorable parliament members, and to all the people of Indonesia, Insya Allah (God will) this year we will reach again rice-self-sufficiency. This is the first time after the New Order era, national rice production higher than our rice consumption. That is why, for the first time since the New Order era, domestic rice price is lower than the international rice price... The government has set increasing target of national stockpile with around 3 million tons, which previously only 1 million tons. Afterward we deal toward our potency
for exporting rice.
(President of Republic Indonesia Dr. H. Susilo Bambang Yudhoyono addressing a draft of the State Budget, 15 August 2008)

The government seriously striving to attain food self-sufficiency since 2005. Output resulted from implementation of various programs which funded from budget allocation of sub-function of Agriculture within the state budget in the last three years, are: (i) achievement of increase of average rice production with 1.5 per annum, even though in 2007 rice production increase to 4.7% or 57.07 million tons, above projection of target amounted 55.46 million tons; (ii) achievement to increase national production of maize with average 5.4 percent per annum (p.50)
Data above is higher than projection made as planned by the ministry of agriculture for 2005-2009 which set target rice production increase from 55.03 million tons in 2005 to 57.71 million tons in 2009 with average 1.21% per annum.

It worthy to note, the average of farm size only 0.09 hectare, and around 53% of household farming managed less than 0.5 hectare. Small scale farmer with less than 0.5 hectare has had increased, from 10.8 million households in1993 to 13.7 million households in 2003 (or 2.6 % per annum).
Census on Agriculture 2003 also revealed from total 24,868,675 households farming both in rural and urban areas there were 13,770,100 households who grows rice alone. Meanwhile the biggest number was farmers who cultivated rice in combination palawija (rice/ palawija) 18,258,858 households. Farmers cultivated Palawija alone, and horticulture, and small holding plantation was 10,858,258, and 8,457,228, and 6,943,183 households. Meanwhile farmers were cultivating forest trees totally 3,427,491 households (Tjahjadi, 3 Nov. 2005). Additionally, Ministry of Agriculture show (2005) from total 25.58 million household farming there were 18.12 households (70.84%) grow rice in 2003 (Table 1).

High yield seed varieties have contribute significantly to national rice production. In the last three years seeds subsidy tends increase within the state budget. Impact of seeds subsidy has shown in national rice production during 2007 totally amounted 57.07 million tons of unmilled rice, that was 2.59 million tons or 4.76% higher compare to 2006. If it converted, from umilled rice to milled rice around will around 63.2%, then, it was equivalent with 1.64 million tons milled rice. In sum, around 82% of totally target additional 2 million tons for national rice production for 2007 has been achieved. That was the highest achievement of rice production in the last 15 years (Apriantono, 21 Jan 2008: Raker dng DPR RI).

According Minister of Agriculture Anton Apriantono, from total seeds subsidy has been planted to 1.4 million hectares rice fields with average increase in productivity between 0.25 to 1 ton per hectares. That was contribution of the quality of high yielding varieties; but detail information on contribution from both inbred rice seeds and hubrid rice seed not available. Thus, seeds subsidy was estimated to reach 0.88 million tons unmilled rice or equivalent 553 thousand tons milled rice or 33% of total additional national production for 2007. Moreover, with additional productivity, if price of unmilled rice was Rp 2,500 per kg, therefore income of rice farmers increase, with rage, between Rp 625,000 and Rp2,500,000 per hectare (Apriantono, 21 Jan 2008: Raker dng DPR RI or Public hearing with MP; Note: 1US$-Rp9,200).

Until third week December 2007, according Apriantono, realisation of seeds subsidy distribution averagely reached 75%, included inbred rice 71%, hybrid rice 75%, hybrid maize 87%, composite-type maize 78%, and soybean seeds 63% (Table 2).

Macro target pursued by the government in 2009, includes (1) PDB of agriculture grow with around 4.6%, (2) labour absoption target to 44.2 million people or expected increase 0.8 million people, (3) malnutrition incident decrease with around 1.0%, (4) Term of trade of rice farmers expected between 115 and 120, and (5) trade balance sheet of agriculture will surplus around US $ 16.22 billion. In production side, for 2009 target covers (1) rice production reach between 63 and 64 million tons unmilled rice or increase 5.0% compare to 2008, (2) corn production reach 18 million tons or increase 10.0% compare to 2008, (3) soybean production 1,2 million tons or increase 30.0% compare to 2008, (4) canesugar production 3.3 million tons or increase 20.0% compare to 2008, also (5) meat cow production 411,000 tons or increase 10.0% compare to 2008. (Apriantono, 21 Jan 2008: Raker dng DPR RI or a public hearing with Commission IV on Agriculture and Fisheries of Parliament)

State seed subsidy
Until early 2005 seed subsidy indirectly allocated to farmers, as Riza V. Tjahjadi (14 Jan. 2005) revealed: the government has subsidized for seeds to producers amounted Rp 100 billion per annum. With this kind of subsidy farmers have right to buy seed with around Rp 500 cheaper than real price, as claimed by chair of the national seed board (also: Kompas, 20 July 2004; 1 US$ = Rp 9,020-Rp 9,128).

For illustration, the State Budget-Additional (APBN-Tambahan 2004) dated 18 October 2004 subsidy of rice seeds amounted 16,200 tons with value Rp 73,024,477,200.00 allocated to Perum Sang Hyang Seri (SHS), a state-own company. Meanwhile total seeds subsidy within APBN-Tambahan 2004 to PT SHS amounted Rp 99.890.760.000,00 included soybean 1.000 tons valued Rp 6,943,099,800.00, and corn 1.000 tons valued Rp19,923,183,000.00. This was shown in audit report carried out by Badan Pemeriksa Keuangan, BPK, or the Supreme Audit Agency examined implementation of public service obligation (PSO) to PT SHS as buffer stock of national seeds (BPK dated 7 July 2006)

On the other hand, Bambang Sayaka et all (2006) revealed application of certified seeds of rice, corn, and soybean was very low. In the last ten years (1996-2005), the average of certified seed only around 22.02% of total planted areas in Indonesia, although there were two provinces which reached above the general pictures; certified rice seeds in East Jawa reached 38% and in the last two years in South Sulawesi certified rice seeds reached 30% respectively.

Subsidised seeds, especially rice seeds as results of analysis on seed system of food commodity and main estate crops by Bambang Sayaka et all (2006) which produced by PT SHS and PT Pertani was not bring much benefit to farmers since the prices relatively the same with non0subsidy rice seeds. Moreover, hybrid rice seeds were not much available in the market since several characteristics of this seeds were not taken for granted by farmers. Such characteristics included susceptible to pests and diseases, highvariability of yields among region and seasons whilst potential yield was only 5.0% above inbred rice seeds. Besides price of hybrid rice seeds relatively expensive, around Rp 30,000 per kg as compare to Rp 6,000 kg for inbred variety (Table 3).

The state of Indonesia, in the last three years, has subsidising to hybrid rice seed companies – both seed producers and seed importer/ distributors. On the other hand seeds companies have been promoting two selling prices: a lower price to the state and a higher price – with average nine to ten times higher compare to selling prices of inbred rice seed varieties – to farmers.

Within the state budget, the state has been subsidising the seed companies with around one-tenth of total non-hybrid (or inbred) rice seeds; 1,700 tons compare to 16,300 tons, with totally 18,000 tons which distributed with no charge to rice farmers spread out the country.

Using linear analogy to the 2008’ state budget allocation for hybrid rice seeds with no trademark mentioned; it’s just hybrid rice seeds, meanwhile there are 31 hybrid rice seeds varieties released by the minister of agriculture between 2000 and 2007. It seem SHS or Perum Sang Hyang Seri, a state-own company have enjoyed the biggest income, also the largest coverage within 18 provinces, meaning SHS which developing two hybrid rice seeds – SL8 and SL 11 varieties - in cooperation with SL AgriTech of the Philippines has got much support by the state (the government and parliament). One thousand two hundred tons compare to five hundred tons subsidy allocated to PT Pertani. As a state-own company, too, PT Pertani is one of two
distribution agencies, not a seeds producer. This also mean, hybrid rice seed companies seem tightly competed as to get state subsidy, they are, as to mention few of total nine companies according the Indonesian Seed Association (Asbenindo, 2007), PT Sumber Alam Sutra, SAS of Group Artagraha, PT Bayer Indonesia, PT Dupont Indonesia, PT. Karya Niaga Beras Mandiri, all with only 7 provinces (Tjahjadi, 2008).

In fact, until 18 June 2008 realisation or implementation of BLBU only reach less than 20% of total value of BLBU, consisted of non-hybrid rice seeds only amounted 4.270 tons compare to total amount of subsidy allocation16.300 tons, hybrid rice seeds 181 tons compare to 1.700 tons, plus soybean seeds 3.322 tons compare to 4,436 tons, and hybrid corn seeds768 tons compare to 3,650 tons. Total amount disbursement was Rp 66 billions meanwhile total subsidy in the state budget for 2008 are Rp 389.64 billion.

According minister of agriculture Anton Apriantono in a public hearing with Commission IV of the parliament (18June 2008) disbursement of BLBU just began for second planting season (planting season within dry season) meanwhile the rest of BLBU will disbursed, at least November this year. Last year, 2007, implementation of BLBU reached 97% of total hybrid rice seeds allocation and 99% for non-hybrid rice seeds. During 2007 disbursement of hybrid rice seeds amounted 1,023 tons compare to total allocation 1,050 tons and non-hybrid rice seeds 5,961 tons compare to 6,000 tons, meanwhile disbursement for corn and soybean reached around 100%.

BLBU, however, is a part of overall seeds subsidy in the state budget. Total seeds subsidy for corn, rice and soybean amounted Rp 689.70 billion, consisted of Rp 110.01 billion as seeds subsidy, national stock seeds Rp 190.04 billion and BLBU Rp 389.64 billion (Antara, 18 June 2008; 1US$ = Rp 9,150 at money changer).

According a decree of minister of finance 30 October 2007 subsidy for seeds of corn both composite and hybrid type seeds, rice seeds and soybean seeds are benih sebar or extension seeds and/or benih pokok or stock seeds (Table 4).

In third quarter of 2008 the hybrid rice promoters may be grinning or a little smile since their competitors – with inbred rice seeds varieties - face serious situations. All newly inbred rice with yield almost equal with hybrid rice, totally three varieties, have been recognised as illegal since without certification been promoting to farmers with mass scale target. As to remember, two of three rice seed varieties are MSP and Super Toy HL2 promotes by two political camps: Megawati Soekarno Putri, and SBY, Susilo Bambang Yudhoyono – both campaigning higher yield as much as claimed by hybrid rice promoters – all claim yields are above 12-14 tons dry grains per hectare. The rest of three inbred varieties, namely Padi Saputra with 9.76 tons dry grains per hectare is promoted by an agriculturist.

All three inbreed varieties, of course, are not included in the subsidised seed price. However, in some rice field areas, for example in East Jawa (not Java) farmers prefer MSP rice varieties than hybrid rice… but:, in general saying, competitors are lessen, in the eyes hybrid rice promoters, except competition among themselves, although most of them, in the last three years, have been enjoying “promotion” through “subsidy price rice seed scheme” within the state budget since 2006 till now. It worthy to note, hidden but strong in the competition among hybrid rice promoters are imported seeds from China and India – the so-called introduction – versus domestic seed breeding varieties.

Several agricultural officers from provincial administrations backed by farmers’ groups clearly stated to reject imported hybrid rice seeds except domestic-produced hybrid rice seeds. On the other hand one of new players in hybrid rice seeds marketing from China embracing army, at least, commander in chief army, included two regional military commanders as partner in field cultivation.

However, technically there are two important advantages gained by hybrid rice promoters the subsidised price of hybrid rice seeds. First, they are the real subsidised entity by the state within the State Budget. They are also the real free-rider in seed sales promotion and technological assessment of hybrid rice with sustainable-sound agriculture such as IPM (integrated pest management) or NPM, nitrogen management, or integrated crop farming or so through the so-called farmer’s field school.

Farmers’ Field School for hybrid rice
There are 31 varieties of hybrid rice released by the minister of agriculture between 2001 and 2007. Parent lines or restorer of those hybrid rice came from Balai Benih Padi or BB Padi= 2, China = 13, Philippines = 2, IRRI = 6, India = 3, and Japan = 5. Maturity days of these hybrid rice varieties range between 85-104 days, and 83-107 days, with parent from Japan for upland irrigated rice field, to 121 days with parent from China (for lowland irrigated rice field). Owner of hybrid rice varieties are the government and private companies. Balai Benih Padi or BB Padi in Sukamandi in West Jawa owned four hybrid rice varieties and the rest 29 varieties owned by private companies; 10 private companies of which one of them cooperate with a state-own company (Table 5).

It worthy to note most hybrid rice seeds imported from China carried out by PT Sumber Alam Sutera amounted 5.000 tons as said by Mufid Busairi, MP of Commission IV on Agriculture and Fisheries, from faction PKB said (Hotel Aryaduta 07 November 2007). He indicated two main concerns, as follows.
1. Commission IV on Agriculture and Fisheries of Parliament as well as MoA prefered domestic-based hybrid rice; no change for hybrid rice in general
2. Imported hybrid rice seed beyond authority of MoA, because this high profile trade politic between JK and TW. That’s why it seem the seed companies in the countries reluctant to file complaint to Komisi Pengawasan Persaingan Usaha, KPPU, or Commission for the Supervision of Business.

Budget allocation to ministry of agriculture, especially program to increase food security, as proposed in the draft of state budget for 2009, will be used to shoulder priority activities, includes (...)(vi) research and dissemination agriculture innovation (Primatani and Sekolah Lapang Pengelolaan Tanaman Terpadu/PTT) or farmers’ field school on integrated crop management amounted Rp 355.0 billion (...) Expected Output will include (...)(iv) rice seeds subsidy 25,000 tons of non-hybrid rice, 750 tons hybrid rice seeds, 1,125 tons hybrid corn seeds, 4,000 tons soybean seeds, horticultura seeds in 32 regions, coffee bean seeds 2,025 hectares, pepper seeds 710 hectares, tea seedlings 1.956 hectares and sugarcane nursery 1,130 hectares (p.88)

On program to increase welfare of the farmers, budget allocation will be directed to shoulders priority activities, include (...)(v) handling fire to lands estate plantation, other disturbing farm activities, with amount Rp13.9 billion. Expected: (…)(iii) 100,000 unit SL-PTT (Sekolah Lapangan Pengelolaan Tanaman dan Sumberdaya Terpadu or farmers’ field school on integrated crop management) organised for food crops with target 2 million hectares of non-hybrid rice, 50,000 hectares hybrid rice, 75,000 hectares of hybrid corn, and 100,000 hectares soybean, also 500 groups of SLPHT (Sekolah Lapangan Pengendalian Hama Terpadu or integrated pest management field school) for food crops (p. 89)

Observation & news clippings

One of example, one of relatively old released a hybrid rice seed varieties amounted 70 kgs been tested by the government within the implementation scheme of the subsidised price seed scheme of the 2008 State Budget, trough a farmer rice group (35 farmers as members) with SL or Sekolah Lapang (field school, popularly for IPM) in 5.0 hectares rice field in a west part of Yogyakarta, namely Samben in Argomulyo Village in Bantul Regency. Although by design this hybrid rice seed packaged with chemical inputs, when monitored by BioTani Indonesia and GRAIN on the first week of July 2008, seem work well – at least, no major pest destroying rice growing. Two pests, namely Green Planthooper and Green Loopers identified farmers’ group involved in the program as potential major pest that should seriously be considered.

However, farmers whenever they grow hybrid rice he/she should buy-and-buy seeds every time he plan to plan rice, meanwhile price are expensive, average 10 times higher compare to price of inbred rice varieties.

So, what are possibilities of the way out for farmers to gain better position?
It is a priority task by pro-farmers and pro-poor proponents.

03-August-2008 15:08
Sukoharjo farmers not interested to grow hybrid rice
(Petani Sukoharjo tak tertarik tanam padi hibrida)
Sukoharjo (Espos)—Farmers in Kabupaten (regent) Sukoharjo in Central Jawa say not interested to grow hybrid rice. They prefer to grow IR 64.

Head of Kebun Benih Padi Lawu I (Rice Seeds Nursery station Padi lawu I), Suwarto ST said to journalists in a village, namely di Desa Lawu Kecamatan Nguter Kabupaten Sukoharjo, Saturday (2/8), although Agriculture Agency at provincial administration has launched a hybrid rice, namely F1 HIPA6JT, which a specific-type of hybrid rice suitable for Central Jawa, in fact farmers not even to steal a look at it.

“Actually growing hybrid rice relativlely saying more profitable. In fact, not much farmers like it. Farmers prefer IR84 or Ciherang variety,” Suwarto said.

He said, hybrid rice variety has some advantages compare to inbred rice, that are more seedling and grains in panicle. Moreover, potential yield more promsing than inbred rice variety.

By: Mastris Radyamas- Solopos Online

Farmers experience, not clear how many planting season carried out.

”We applied organic fertilisers to hybrid rice. Harvested yield we get between 11 and 15 tons unhusk rice per hectare. Compare to chemical fertlisers, the result is one comparable to three,” said Sumarno, a farmer in Nguter Sukoharjo in Central Jawa, practicing an integrated farming (rice with cattle).

Earlier he explained for a hectare rice field needs 200 kilogram POPs, 60 liters PPC, and 6 liters liquid pesticide, with totally cost Rp 530.000

Unfortunately, although integrated farming (rice with cattle) has promising much profit, in fact, it also need relatively big working capital. Face the expensive prices to buy cattle constraining farmers to shift to such farming system.

Joko Warsito, a chair of a group of farmer, namely Gabungan Kelompok Tani Tani Jaya, in a village namely Desa Nguter, said to buy a cattle someone should pay around Rp 7 to Rp 8 million per head. Beside price of cattle feeding, esp. Soybean meal, also reletively expensive. (SON)
Note: POP = pupuk organik padat or solid or compact organic fertiliser, PPC = pupuk pelengkap cair or liquid supplement fertiliser.

Source :, Kamis, 26 Juni 2008
(see also: Asosiasi Pemerintah Kabupaten Seluruh Indonesia (APKASI)
Wisma Alia Lt. 4 Jl. MI Ridwan Rais 10-18 Jakarta Pusat 10110
Ph. (+62) 21 3867670, Fax (+62) 21 3867671 email:


Ngawi Farmers, East Jawa complaining hybrid rice seeds
Hundred farmers in Desa/Kecamatan Geneng, Kabupaten Ngawi, East Jawa, who aremembers of 10 farmer groups have complaint hybrid rice seeds of subsidised price seed scheme has in damaged condition caused by totor or cabuk (a kind of disease). In turn, dozen tons of hybrid rice seeds cannot be planted.

In a hamlet, Dusun Pilang Puyung 2, Desa Geneng, at leat, around 30 farmers returning hybrid rice they’d received to chair of Kelompok Tani Margo Tani.

"The seeds are in damaged condition containing totor. Farmers prefer to choose an inbred rice variety, namely Ciherang rather than hybrid rice, although hybrid rice which been distributed are high yield variety," said chair of Kelompok Tani Margo Tani Kaseri, yesterday.
Source: Media Indonesia Online, Selasa, 19 Agustus 2008 00:01 WIB

It should be noted, the word high yielded rice variety, now, shifted into hybrid rice variety. High yield variety of inbred rice varieties been eliminated.

Interesting phenomena the government through the state budget for 2008 began re-introduce organic fertilizer to farmers at large. Let’s see the years coming (Table 6).



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