Research Paper
Year: 2019 | Month: June | Volume: 6 | Issue: 6 | Pages: 418-426
The Effectiveness of Auction Market for Red Chili in North Tapanuli Regency, Indonesia
Desi Novita1, Gustina Siregar2, Mhd. Asaad1, Mhd. Buhari Sibuea2, Tri Martial1, Suardi Bakri3
1Department of Agribusiness, Faculty of Agriculture, Universitas Islam Sumatera Utara, Indonesia.
2Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Sumatera Utara, Indonesia.
3Department of Agribusiness, Faculty of Agriculture, Universitas of Islam Makassar, Indonesia.
Corresponding Author: Desi Novita
ABSTRACT
Red chili (Capsicum annum L) is one of the agricultural commodities that has a strategic role in the economy of North Sumatra Province. Red chili is vulnerable to price fluctuations. One way to minimize high price fluctuations is with the auction market. This study aims to determine the mechanism and impact of the implementation of the auction market, know the difference in product selling prices inside and outside the auction market and the level of effectiveness of the red chili auction market in North Tapanuli Regency. The method used in this study uses descriptive analysis method. The research respondents were 32 farmers who had sold their red chili on the auction market. Sampling of farmers, sub-districts and auction market locations was conducted using a purposive method considering that the auction market was only in North Tapanuli Regency. The results of the study indicate that the auction market mechanism has been going well which involves farmers, intermediary traders, Government Companies, and government agencies.There is a difference in the selling price per kilogram between prices that occur inside and outside the auction market.The impact of the auction market implementation includes: higher selling price, certainty that the production can be sold, and the speed of the buying and selling process. The level of effectiveness of auction that has occurred is effective (77.93%). The biggest indicator that influences the effectiveness of the auction market is the act of conflict or tension that occurs in auction market institutions, greater output (benefits) and flexibility that occurs between actors in the auction market.
Key words: Auction market, Effectiveness, North Sumatra, Red chili
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