Jakarta - Ngawi Cooperates to Expand Coverage of Paddy Absorption

PT Food Station Tjipinang Jaya has involved the Ngawi District administration through Daya Petani Sembada and Tani Sido Rukun Group, Geneng Sub-district, Ngawi District, East Java, which aims to expand the coverage of paddy for rice supply in Jakarta. Previously the company also had its existence to Central Java, precisely in Cilacap, targeting 1,000 hectares of agricultural land.

Thereby this cooperation has two dimensions that are just

The cooperation itself was marked by the signing of a cooperation agreement with the administration, represented by Jakarta Governor, Anies Baswedan, with Ngawi District represented by Ngawi Regent, Ony Anwar. It was witnessed by East Java Governor, Khofifah Indar Parawansa, PT Food Station ranks, Daya Tani Sembada and Tani Sido Rukun Group at the Geneng Village Hall, Alas Pecah Hamlet, Geneng District, Ngawi Regency, on Sunday (4/25).

On that occasion, the Governor explained that this inter-regional cooperation was part of the constitutional mandate to bring social justice to all Indonesian people.

Rice Warehouse Receipt System Applied in Solo

"In government we are sworn to implement the constitution and the constitutional order is to bring social justice to all Indonesian people," he disclosed, as quoted by Jakarta PPID's press release.

"Thereby this cooperation has two dimensions that are just. One side we seriously want food needs in Jakarta to be met and on the other hand we want to bring social justice, especially for local farmers thus they can get bigger benefits, get increased welfare, and get certainty for their products," he added.

Efforts to improve farmers' welfare continue to be made through the points in this collaboration, he furthered, one of them was a warehouse receipt system that made farmers not rush to sell their grain at a low price, but could store it first, improve quality, thus the price would also be stable.

"Through the warehouse receipt system, they (farmers) will have certainty regarding the price of their products. Additionally, by storing it in warehouse receipts, they can also use it to take financing loans from financial institutions," he explained.

East Java Governor, Khofifah Indar Parawansa hoped that the cooperation could be further expanded in various aspects, as food demand in several regions in East Java was experiencing a surplus and producers had difficulty developing the market.

"Thank your for the cooperation that will provide benefits to increasing welfare, especially in Ngawi and East Java. We'll be a part of strengthening it and we request that we can access more and connect the Gapoktan thus they get a bigger market, especially in Jakarta," he uttered.

As for the information, PT Food Station has collaborated with Daya Tani Sembada and Tani Sido Rukun Group since 2015 through three forms of cooperation, namely warehouse management with SRG (Warehouse Receipt System) with Daya Tani Sembada, which in the last two years the SRG Warehouse can store an average of 600 tons, while the 2021 target is 1,000 tons.

This is useful because in general, during the main harvest, the harvested dry grain is very cheap. Even, based on the warehouse receipt system mechanism, the Food Station as the manager will help to become a stand by buyer at a good price, thus farmers do not have to bother looking for buyers.

Agricultural products stored in the SRG warehouse will receive a receipt. From the receipt, they can guarantee to the selected bank to get a loan as business capital for planting costs in the following season.

So, they are able to sell their crops when the price is stable. With SRG, they can store milled dry paddy, cracked rice, or gloss with a moisture content between 12-14%. Once prices stabilize, they may sell their paddy at a better price.

The next collaboration is with the Daya Tani Sembada Mill which started in 2019 and has supplied PK (Broken Skin & Finished Rice) rice in a number of:

- 2019 = 234 tons

- 2020 = 6,515 tons

- 2021 = 2,280 tons in the 3rd quarter and the estimated total for this year could be 9,000 tons

Third, Food Station also plans to work with the Tani Sido Rukun Group in absorbing the harvest, with details:

- Land area of 200 hectares with

- Productivity 5.7 to 6 tons per hectare.

- With a potential yield of 1,140 tons of gkp (Harvested Dry Grain) or 604 tons of rice.

The company also provides guidance and assistance to them in selecting varieties and controlling post-harvest quality and as an offtaker for agricultural products.