Paddy Loss and Its Implication to Fertilizer Subsidy in Indonesia

A Faroby Falatehan,Nizar Nasrullah,Yusman Syaukat,Hastuti Hastuti

doi:10.4308/hjb.28.1.73

Abstract

Indonesia is the third largest rice producer in the world, at the same time it’s a country that imports rice from various countries. The government has provided input subsidies to increase rice production and reduce imports. Modes of rice farming in Indonesia is relatively diverse, from conventional to modern, even in the post-harvest process. The objectives of this study are: to analyze the impact of post-harvest handling on food loss and to analyze the relationship between paddy or rice loss with the quantity and value of fertilizers subsidy and paddy production in Indonesia. The estimated food (rice) loss includes the stages of harvesting, threshing, drying, and milling stages and distribution. Farmers use various technologies in processing rice: serrated sickle in harvesting, power thresher in threshing, and flatbed dryer in drying; while rice milling was done using conventional rice miller. The total rice loss reached 6.91 million tons in 2014 and continued to increase to 8.14 million tons in 2018. The growth rate of fertilizer subsidy value is higher than those of subsidized fertilizer quantity and paddy or rice loss. The results indicated that growth rates of paddy production and rice loss was lower than increased of government subsidy for fertilizer.

Highlights

Food and Agriculture Organization (2014) has strongly promoted a movement to support an increase in food availability apart from increasing production, namely by reducing the amount of food loss along the production and distribution chain and decreasing food loss in consumption chain
The objectives of this study are: to analyze the impact of post-harvest handling on food loss and to analyze the relationship between paddy or rice loss with the quantity and value of fertilizers subsidy and paddy production in Indonesia
The results indicated that growth rates of paddy production and rice loss was lower than increased of government subsidy for fertilizer

Summary

Introduction

Food and Agriculture Organization (2014) has strongly promoted a movement to support an increase in food availability apart from increasing production, namely by reducing the amount of food loss along the production and distribution chain (food loss) and decreasing food loss in consumption chain (food waste). Low production rate does not always become the main reason for inability to supply food. This could be due to high rate of food loss. According to FAO (2011), quantity of global food loss reached 33.3% or equals 1.3 trillion ton per year. Paddy harvesting area in Indonesia continued to increase from 13.80 million ha in 2014 to 16 million ha in 2018 (BPS 2020). Annual growth rate of harvesting area is about 3.79% in this period (Figure 1). Rice production is increasing in the same period. Rice production increases from 70.85 million ton of milled dry paddy (MDP) in 2014 to 83.04 million tons in 2018. Annual growth of rice production increase reached 4.07%, higher than the

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