The Price Of Rawit Chili In East Java Drops As A Result Of PPKM Which Makes Hotels And Restaurants Not Operating

SURABAYA - The implementation of Community Activity Restrictions (PPKM) has made the price of cayenne pepper in East Java slump. Where the price of cayenne pepper was originally around Rp. 15 thousand, it decreased to Rp. 6 to Rp. 7 thousand per kilogram.

“But now it has started to increase by Rp9 thousand per kilogram. It's gone up but very little," said Deputy Chair of the East Java Indonesian Chili Agribusiness Association (AACI), Nanang Triatmoko, confirmed on Thursday, September 9.

The main factor causing the decline in the price of cayenne pepper called Nanang is PPKM. As a result, the harvest of cayenne pepper in several areas in East Java, such as Madura and Banyuwangi, is not absorbed.

"Because during PPKM the absorption is only 50 percent. This is because many hotels, restaurants and cafes (Horeka) are closed, even street vendors too. If this continues, then the price of cayenne pepper at the peak of harvest will certainly drop," he said.

The average price of cayenne pepper in East Java based on the Information System of Availability and Development of Prices of Basic Materials (Siskaperbapo) is Rp. 15,851. Head of the Department of Agriculture and Food Security in East Java Hadi Sulistyo said the production of cayenne pepper in September is estimated to reach 33,736 tons. Then in October it reached 22,447 tons.

"In general, until the end of December, cayenne pepper production for a year reached 426,571 tons with consumption for food a year 66,958 tons. So the balance in 2021 is a surplus of 359,613 tons," he said.

Hadi said that the production of large chilies in September is estimated to reach 9,039 tons. Then in October it is estimated to reach 7,189 tons. In general, he said, until the end of December, the production of large chilies for a year reached 96,914 tons with a year's consumption of 64,883 tons for food.

"This means that the balance sheet in 2021 will have a surplus of 32,031 tons. If it is related to falling prices, it is likely due to increased production results," said Hadi.