Tobacco Farmers and Factories Talks Stalled Over Prices
The meeting at the Industry Office of Jember that lasted more than four hours between the representatives of tobacco growers and tobacco warehouses in Jember failed to reach an agreement on the standard purchase price of tobacco. "We cant wait for a long time. Even if its just a week, if its not sold, our tobacco becomes sarkah (Madurese: garbage)," said Vice Chair of the Jember Association of Tobacco Growers, Hendro Handoko.
The farmers and factory owners agreed that warehouses and cigarette factories would purchase tobacco from the farmers harvest. Second, the purchase is made at a price not at the farmers disadvantage and appropriate to the grade or level of the tobaccos quality. They could not agree on the standard purchase price because the representatives said they had to consult with the factory leaders.
"Because there is still no clear agreement and we will continue to demand. If still no agreement, we the farmers will demonstrate in the thousands," said Handoko. Djarum Kudus warehouse representative, H. Sonsay, repeated their commitment to purchase tobacco from the farmers. "Because if farmers do not grow tobacco, we will suffer losses, too," he said. However, he and representatives from other factories such as PT HM Sampoerna and Bentoel cannot make a decision at this time. Head of the Jember Office of Industry, Ahmad Sudiono, says he will try to summon the leadership of cigarette factories who own tobacco warehouses in Jember to discuss the issue.
"Together with the regent I'll contact them directly, so that in a day or two a mutual agreement on the price can be reached by the farmers and manufacturers," he said. The farmers claim that tobacco prices are falling dramatically. Kasturi tobacco sells for only Rp20 thousand per kilogram and Rengganis only sells for Rp16 to Rp17 thousand per kilogram. In 2011, the two sold for up to Rp47 thousand per kilogram. Farmers believe that the plunging prices were caused by foul play between brokers and warehouse managers cigarette factory representatives.