PRICE AND SUPPLY STABILITY MODEL IN RAW SALT TRADING USING WAREHOUSE RECEIPT SYSTEM

• Main Author: ( NIM: 23411052 ); Pembimbing : Dr. Anas Ma’ruf, MURDOPO
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19024
• Institution: Institut Teknologi Bandung

Instability of price and supply occur in raw salt trading. During the harvest period, price of raw salt are very low because of huge of supply, however the goverment has established the rule about minimum price of raw salt. Farmers don’t have financial ability and acces to financial institution to get loan, that makes farmers rely to merchant to gain some credit loan and pay the loan with the harvest. Harvest period of salt occur only five months in a year, it makes instability of supply to the salt mill. Producer groups as well as small and medium farmers are usually unable to enjoy improved harvest. Buffer stock can be used to solve the instability price and supply. Warehouse receipt also can be used as collateral to financial institution to gain credit loan. This research propose a system with three main entities include farmers as raw salt prouducer, buffer agency as intermediary entities between farmers and consumer, salt mill as consumer of raw salt. Other entities which are include in the system are warehouse operators and financial institutions. Warehouse operators issues warehouse receipts as evidence that specified salt of stated quantity and quality. The warehouse operator holds the stored salt by way of safe custody. Financial institution gives loan to commodities owner with warehouse receipt as collateral. Buffer agency is set up to buy the whole raw salt from farmers and then sell them to salt mill. Buffer agency as commodities owner placed its product in warehouse and get warehouse receipts issued by warehouse operator. This receipt used as collateral to gain loan from support borrowing. When inventories are not sufficient to provide the consumer need, buffer agency would import salt to cover up the shortage. Warehouse receipt are instrument that can convert invertories of salt into readily tradable products, they are an effective means for facilitating and managing transaction for this commodities. According to the scheme which has been developed, either buffer agency or consumer can redeems receipts at warehouse for goods. The objective of the research is to determine the quantity of salt managed by buffer agency, it also indentify the benefits for producers, buffer agency and salt mill from such a sheme. According to the experiment, the benefit for farmers has increased 73% and this model can overcome instability of price and supply which had occured.