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Experts issue warning as key crop surges in price: 'It is quite significant'

"Facing difficulties."

The cost of red chilies in Medan, Indonesia, hit 100,000 rupiah per kilo (roughly $6 USD) this week.

Photo Credit: iStock

The cost of red chilies in Medan, Indonesia, hit 100,000 rupiah per kilo (roughly $6) this week, forcing shoppers to cut their purchases by two-thirds or more.

According to Kompas, people who used to purchase 300 grams of red chilies are cutting down to only 100 grams.

What happened?

Four months without adequate rainfall devastated chili farms across North Sumatra's highlands. 

Dairi Regency, Humbang Hasundutan, and North Tapanuli all experienced crop failures, and market vendors saw their available stock cut in half. 

A Pringgan Market vendor explained that she now sources just 5 kilograms daily, down from her typical 10-kilo order.

Within seven days, the price per kilo surged from 60,000 rupiah to 100,000. 

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"The economy is currently facing difficulties as well," trader Elsa Dayani told Kompas. "If prices rise even slightly, buyers immediately complain. If the price of red chili increases, it is quite significant."

Farms at lower elevations in Batu Bara Regency briefly filled the gap, but their growing season has since concluded.

Why are droughts so concerning?

Crop destruction from water scarcity drives up the cost of groceries for families and makes everyday cooking ingredients hard to afford. 

Higher global temperatures intensify and prolong these rainless periods.

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The province produced 22,100 tons of chilies in August, exceeding the 10,247 tons needed for local use. Yet buyers from Aceh, Riau, West Sumatra, and additional provinces purchase their supply at Medan's wholesale hub, creating scarcity despite surplus production.

August saw a 3.67% jump in what residents paid for food, beverages, and tobacco. This pushed the month's inflation rate to 1.37%, with annual inflation hitting 4.42%, as Kompas observed.

Households must make difficult decisions when cooking staples become expensive. 

Weather shifts affecting Indonesian farms also impact agricultural regions globally, raising prices everywhere.

What's being done about rising chili prices?

Provincial authorities have deployed drying machines to farming communities, and Batu Bara received its first batch of this equipment.

Farmers can preserve bumper crops by drying and storing surplus chilies. Vendors will then have inventory to sell during lean production periods, stabilizing costs year-round.

You can protect your household budget by sourcing seasonal vegetables and fruits when they're abundant and then preserving them through freezing or canning.

Buying from nearby farms strengthens food networks capable of weathering climate shifts, and building pantry reserves when prices are low gives you flexibility for when scarcity hits.

Reach out to your representatives about agricultural climate programs. Funding these initiatives provides farmers with access to irrigation infrastructure, seeds bred for dry conditions, and meteorological data, thereby safeguarding their income and your food expenses.

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