September 20, 2007

Soft loans help boost Indonesian corn output

Indonesia is reaping the fruits of its labour this year, in the form of a 13-percent increase in corn production in return for soft loans extended to corn farmers last year, a senior agriculture official said Tuesday (Sep 20).

Indonesia now expects its corn output for the year to hit 13.5 million due to improved productivity, said Sutarto Alimoeso, director general of food crops at the Agriculture Ministry.

The government extended IDR 100 billion (US$10.8 million) in soft loans to corn farmers for seed purchases in 2006.

Corn production in key corn-growing areas is rising he said.

Meanwhile, the country's statistics bureau has given a less optimistic forecast, expecting corn output to rise 7.2 percent to 12.45 million tonnes this year.