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DATE: Tue, 24 Jul 2001 10:32:35
From: "Riza V. Tjahjadi" <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]

Pesticide Deregulation is Expected to Improve Market Structure?


Monopolistic behavior trace by pesticide producers raise the
deregulation. The policy is expected to eliminate monopoly practice and
help farmer.


For months the government going to deregulate this industry, and Friday
on 20 July 2001 PAN Indonesia has submitted a second opinion as to
response to a draft of ministry-level decree. Deregulation of pesticide
is aimed to eliminate current monopolistic market share. This
deregulation based on decree UU No. 5 year 1999 about anti trust acts
and unhealthily business competition. Therefore, one day every person or
legally institution will have an opportunity to produce and to market
pesticide, as long their pesticide meet with governments standard and
quality. According to Ato Suprapto, Director General of Bina Sarana and
Prasarana of Agriculture Department, pesticide deregulation was prepared
by government is refer to International s rules. It includes integrated
pest control, safety-first aspects, and health and environmental
community.

PAN Indonesia, on the other hand, suggested several additional points,
including the important of safeguarding measures, the need of increasing
control and supervision, etc. At the same time PAN Indonesia also
demanding a public type-sanction compare to proposed administrative
sanction to civil servant suspected to violate the decree. Moreover,
PAN Indonesia also perceived the need of a joint ministry-level decree
from other department soon after a decree signed on.

A response from PAN Indonesia was needed by the minister of agriculture,
as the last round, as quoted the secretary of commission of pesticide.
The minister just remember in the last minutes, just before he schedule
to sign a decree. Meanwhile, PAN Indonesia has met and made discussion
with Ato Suprapto on 10 July 2001.

Pesticide deregulation package consists of some points:
1. Quality specification of active material. In the previous regulation,
there is no Quality specification of active material, in this new
regulation it will be arranged based on FAO regulation.

2. Efication test  requirement. In the previous policy, efication test
is done in two locations, but in this new regulation efication test
will  be done in one location.


3. Limited time for registration. In the previous policy there was no
registration time, but in this new policy registration time will be
limited with using a scheme.


4.  Content of active material. In the previous policy, pesticide that
has an active material content greater than one was forbidden, but in
this new policy is acceptable as long there is no antagonist effect and
not disturb natural pest enemy and no negative effect for the
environment.


Governments deregulation on the right of pesticide inventory will
change the competition in pesticide market, which has been controlled by
only three companies. Besides, the kinds of pesticides available in the
market will change significantly, because this new regulation allows
producing complex pesticides.

For farmers welfare growth, according a news report of agribusiness
company, this deregulation according to an agribusiness company, is a
very good decision by theoretically, because its simplified procedure
will makes marketers who want to invest in this business look an open
market opportunity, so automatically creating of free and open
competition structure can be real. Creating this market structure
automatically will depress pesticide price, where now pesticide price
increase gradually and its percentage of increase is higher than other
agricultural products.

Increasing of agricultural input, which unbalance with increasing of
agricultural products has been a cause of decreasing of farmers
welfares. But, with its some advantages this deregulation still has
weakness such as:

Lower price of pesticide will increase pesticide usage excessive. This
method of application will make a pest resistance, destroy natural enemy
and the environment. More, for pesticide market, excessively pesticide
usage will make Indonesias agricultural products difficult to penetrate
international market that applied tight control on pesticide residue for
agricultural products. An example of this case can be sawn in depending
of inorganic fertilizer on the past, because this commodity was cheaper.
Depending on inorganic fertilizer caused most farmers used to applied
pesticide excessively and made impact on decreasing national
productivity (due to poor soil condition) and farmers welfares.


More pesticides in the market the more difficult for government to run
its control function, then probability of spread of illegal pesticides
become larger.

Therefore, Kasumbogo Untung, an expert of toxiology of the Gajah Mada
University said that  to minimize the negative effects on this pesticide
deregulation, government should regulate toxin material pesticide usage
for the people, increase the advantages, and minimized the risk. He also
said that government should implement the regulation over all, even from
production side, import, transportation, pesticide waste treatment so
negative effect of using pesticide can be reduction.

In his addition explanation, Kasumbogo said that to reduce negative
effect due to pesticide usage on the environment, an exposure analysis
should be conducted as a requirement before those pesticides marketed.
If negative effect found due to those pesticide such as bed environment
or bed health or treats health against people, then its pesticide
producer license should be withdrawal (based on government regulation,
pesticide producer license is expired in 5 years).

A data compiled by PAN Indonesia show around 37 active ingredients have
been banned the government.
1. 2,3,5-The                                         33. Senyawa arsen
2. 2,4,5-Triklorofenol                          34. Senyawa merkuri
3. 2,4,6-Triklorofenol                          35. Strikhnin
4. Natrium 4-Brom-2,5-diklorofenol   36. Telodrin
5. Aldikarb                                        37. Toxaphene
6. Aldrin
7. Arsona
8. Cyhexatin
9. Diklorodifeniltrikloroetan
10. Dibromokloropropan
11. Dieldrin
12. Diklorofenol
13. Dinoseb
14. EPN
15. Endrin
16. Etilen Dibromidal (EDB)
17. Fosfor merah
18. Halogen fenol
19. Heksaklorida (HCH) dan isomernya
20. Heptaklor
21. Kaptafol
22. Klordan
23. Klordimefon
24. Leptofos
25. Lindan
26. Metoksiklor
27. Mevinfos
28. Monosodium metam
29. Natrium Klorat
30. Natrium tribromofenol
31. Paration metil
32. Pentaklorofenol (PCP) and its salts

In addition, by January 2000 (last year) it was registered around 114
companies  as registration holders, while 594 trademark with 279 active
ingredients registered for agricultural purposed (excluded for hygine
and sanitation type-pesticide).

In February 2001 PAN Indonesia has alerted to public at large whilst
urged the government take stern action against illegal (banned)
pesticide, and world-wide known as one of the Dirty Dozen, namely Temix
10G, Temix 5G, Temix LD found in East Kalimantan. In West Jawa, PAN
Indonesia also found banned pesticides but available in the village
kioks, also apply for rice growing.

It worthy to note, recently PAN Indonesia in coalition with other NGOs
have sue the minister as to annul his decree for limited releasing of a
Bollgard cotton variety of Monsanto. That's one of reasons, more legal
input perspective proposed to a draft of ministry-level decree on
pesticide registration.


Jakarta, 24 July 2001
Prepared by
Riza V. Tjahjadi assited by Iwan.






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