Panca Nugraha, Mataram – Hundreds of tobacco farmers rallied against the planned kerosene subsidy cut Monday, at the West Nusa Tenggara governor's office in Mataram.
Around 300 farmers from East and Central Lombok, grouped under the Indonesian Farmers' Association (Petani), also demanded a hike in the price of tobacco leaves this year.
The rally was triggered by a governor's circular requiring farmers to use coal as a fuel substitute for their omprongan ovens (used to dry tobacco leaves) because the kerosene subsidy would be phased out this year.
"This policy puts us at a disadvantage. If the kerosene subsidy is discontinued, our production costs will rise significantly, while the price of tobacco has never increased," rally coordinator Ahmad Syarif Husein said.
According to Husein, only around 1,500 of the 14,500 kerosene-fed omprongan on Lombok Island had been converted to use coal.
He acknowledged coal was more cost-efficient, but said farmers faced a challenge in converting their omprongan to use coal because it would cost at least Rp 10 million (US$900).
Farmers' limited experience with coal ovens would also have an adverse affect on tobacco leaf quality and its subsequent value.
Husein said the price of dried tobacco, set at between Rp 2.7 million and Rp 3 million per 100 kilograms by 15 cigarette companies working in partnership with the provincial administration, worked against farmers.
During the rally, farmers demanded that the government raise the price of tobacco to between Rp 3.5 million and Rp 3.8 million per 100 kilograms so they could cover production costs when the government phased out the kerosene subsidy.
Husein said an omprongan required at least 4,500 liters of kerosene every tobacco planting season. At a subsidized price of Rp 2,600 per liter, it would cost Rp 12.6 million to operate each oven.
According to Husein, this amount would surge significantly if the government stopped providing the subsidy, because the price could reach Rp 5,000 per liter.
"We urge the provincial administration and central government to pay attention to our plight so we won't encounter problems during the harvest. The planting season is approaching," he said.
After a closed door meeting at the governer's office between representatives of the rally and assistant of economics and development affairs Muhammad Nur, Nur told reporters the circular followed up the central government's decision to phase out the kerosene subsidy this year.
Three points included in the circular were that farmers would no longer be provided with the kerosene subsidy as of this year; that they would not be allowed to use firewood for environmental reasons; and that the government has set coal as fuel substitute to replace kerosene.
In opposition to the Petani data, Nur said a majority of the 13,509 tobacco ovens were found in East Lombok, of which 8,569 had been converted into coal ovens.
He also said the provincial administration continued to help farmers to convert their kerosene ovens into coal ovens through the Fuel Alternative for Virginia Tobacco Omprongan task force, which was formed in 2007.
The Virginia tobacco planting season in Lombok will begin in May and the harvest season is from August to November.
The prospect of growing Virginia tobacco in West Nusa Tenggara is promising. Based on data at the West Nusa Tenggara Plantation Agency, the province produces 45,000 tons of tobacco annually from 22,000 hectares of farms, most of which are located in East Lombok.
As much as 75 percent of the production volume is intended for the domestic market. Each tobacco planting and harvest season absorbs around 154,000 workers.