Ladies And Gentlemen, KPPU Estimates Chili Prices Will Continue To Soar In The Month Of Fasting

JAKARTA - Entering the month of Ramadan, not only cooking oil has an exorbitant price, but also a number of basic commodities. One of them is chili. In fact, it is predicted that chili prices will continue to increase.

The Economic Director of the Business Competition Commission (KPPU) Mulyawan Renanggala predicts that chili prices will continue to experience spikes this Ramadan. This price increase is due to insufficient stock.

Based on data from the Ministry of Trade (Kemendag) as of March 28, 2022, the indicative stock of chili is 371.95 tons per day, with a demand of 386 thousand tons per day or a contraction of 3.64 percent.

"Currently chili production has decreased by 3 percent, it cannot meet the needs of 3 percent," he said in a press teleconference, Friday, April 1.

In Jakarta alone, the price of curly red chili rose by Rp. 319 per kg, which was at Rp. 46,404 per kg. Then, large red chilies are IDR 488 per kg to IDR 56,111 per kg. Meanwhile, red cayenne pepper rose by Rp. 170 per kg to Rp. 58,574 per kg.

"So this will increase during this fasting month," he said.

In addition to red chili, Mulyawan said beef also increased by 0.33 percent or Rp. 121 thousand per kg ahead of this Ramadan. Then, the price of cooking oil rose by 9.21 percent or in the range of Rp. 21,500 per liter.

The Ministry of Trade estimates that chili will be over supply

Previously, the Director General of Domestic Trade at the Ministry of Trade, Oke Nurwan, said that chili prices still recorded an increase compared to last month due to heavy rainfall in Sepang from February to early March.

"However, it can be seen from the decrease in chili prices by an average of 5-8 percent compared to last week. It is estimated that during Ramadan the supply has returned to optimal and even tends to be over-supply," he said in a hearing with Commission VI, Wednesday, March 30.

Okay said, the Ministry of Trade is currently monitoring intensive distribution in chili production centers such as Kediri, Blitar, Tuban, Magelang, Situbondo, and Malang.

"All of them are ready to harvest simultaneously from late March to early April with production of up to 60 tons per day in each area," he explained.