Fluctuation and Price Responses Retail Level of Red Chili, Cayenne Pepper, Shallot in Five Major Cities in Java

Abstract

Java Island aside from being a center of production is also a center of consumption of commodities such as red chili, cayenne pepper, and shallots. During 2008 – 2018, it was known that the average consumer price of red chili, cayenne pepper and shallots in five major cities in Java fluctuated. The purpose of this study was to determine the price behavior and price response of commodity red chili, cayenne pepper, and shaloots in five big cities in Java. The results showed that the price behavior of red chili, cayenne pepper, and shallot was highly volatile and unstable. This is known from the high average consumer price variations (> 9 persen) in five big cities in java. Meanwhile, based on the IRF value, it is known that the change in the price of red chili is responded positively by the commodity cayenne and shallots. Likewise, changes in the price of shallots responded positively by red chili and cayenne peppers. But for changes in the price of cayenne peppers received a negative response from red chili and shallots in the city of Surabaya. It is suggested that the role of the government in price stabilization is by controlling wholesale and retail prices, improving infrastructure, developing connectivity between regions, by creating a price information system.