Perfecting policies of chili agribusiness to support food security: Evidence from Indonesia districts

Abstract

The availability of chili supply to meet domestic demand is very important, especially mitigating the volatility of chili prices. The fluctuating development of chili prices implies that the maintenance of chili supply is very important in maintaining food price stability. It is because decreased of chili productivity will lead to price increases with increased demand, while excess supply also causes prices to drop, especially at the farm level. The districts of Jember and Banyuwangi as the largest chili suppliers in East Java need to make strategic policies so that production, productivity, and prices of chilies do not fluctuate from time to time. The purpose of this study was to develop a chili agribusiness development strategy to support food security in Jember and Banyuwangi. The analytical tools used are SWOT analysis and Analytical Hierarchy Process (AHP). Based on the results of the analysis, it was found that the main policy priorities in Banyuwangi Regency were increasing information on prices and chili products, strengthening the commitment of farmers, traders and industry, and increasing trust among industry players. Whereas in Jember Regency, namely strengthening the commitment of farmers, traders and industry, minimizing distribution barriers, and ease of obtaining funds.