Jakarta (ANTARA News) - The government will not issue a special decision to raise milk production amidst domestic milk price hike, the Industry Minister said.
"No decision (on milk production) has been issued," Fahmi said here on Friday.
Only the agriculture ministry which has a program to raise milk production from 10 thousand liters to 15 thousand liters per day, Fahmi said, in view of the current the milk price hike.
The agriculture ministry is trying to raise the number of dairy cows in a bid to increase Indonesia`s milk production.
Previously, Trade Minister Mari Elka Pangestu said the recent milk price hike was still within a reasonable limit in accordance with the annual increase of five percent.
Minister Pangestu made the remarks after attending a limited cabinet meeting at the presidential office here on July 3.
The Trade Minister found out that milk retail price increased only by 2 to 3 percent except in Denpasar, Bali, where the price had risen by about 10 percent.
The milk price hike was caused by the high price of milk powder (full cream) as its raw material had risen from US$280 per ton to US$4,500 per ton in the January-July period.
Meanwhile, the trade minister said the increase in the price of raw material of milk powder did not mean that milk retail price had also increased as producers in the country had taken efficiency measures.
Producers have predicted the price of the product would increase by only 5 to 10 percent, Mari said, noting that the price would increase in stages during the year.
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