IMPLEMENTATION OF PRICE REGULATION ON SALT SMALLHOLDERS

IMPLEMENTATION OF PRICE REGULATION ON SALT SMALLHOLDERS

Ihsannudin, Dwi R. Hidayati, Slamet Widodo, and Aminah H.H Ariyani
Agribusiness Department, Faculty of Agriculture, University of Trunojoyo Madura

ABSTRACT
Price is an important attributes in giving value on output production of salt. This is because price affects the income received by salt farmers. This research aimed to understand the salt prices received by salt farmers in the production season of 2014 and to compare it to the salt prices regulation structure that had been implemented by government through the Decision Letter of the Directorate General of the Ministry of Trade Number 02/DAGLU/PER/5/2011. Then this study also offers recommendations to improve or maintain prices received by salt farmers as mentioned in the regulations. Research was held in two districts of Madura Island (Sampang and Pamekasan) which are the main production areas for the harvesting of salt in Indonesia. The study was analyzed by using quantitave and qualitative data. Result shown that salt received by salt farmers are still under regulation of either quality 1 or quality 2, in which the regulation stated that quality 1 is Rp.750.000,-per tonnage ; and quality 2 is Rp.550.000,-per tonnage. The recommendations are it needs consistency of salt production achievement as grade of quality 1 and quality 2, improvement of marketing institution, consistency of import termination during harvesting season on smallholders in order to avoid over supply of salt,strict supervision that supported by giving there ward and punishment due to salt purchase, consistency of buffer institution existence in purchasing smallholder’s salt and having effort to give aid transfer by putting orientation on output (by output subsidy).

keywords:price,salt, regulation

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