Effectiveness of Red Chilli Auction Markets in the Production Center of Yogyakarta, Indonesia

Department of Agribusiness, Universitas Muhammadiyah Yogyakarta Indonesia, Tamantirto Kasihan Bantul, Yogyakarta, Indonesia

^* Corresponding author: susanawati@umy.ac.id

Abstract

This study aims to describe the auction market mechanism for red chili in Indonesia’s production hub of Yogyakarta and assess its efficacy. This study’s location was determined in Kulonprogo Regency, a red chili-producing hub in Yogyakarta, Indonesia. There were seven auction markets in Kulonprogo Regency, of which three were selected for operating at the time of the study and were located in Panjatan District. This study was conducted in 2021, with a sample of 50 red chili farmers, who were active participants in three red chili auction markets. In addition to red chili producers, three auction market administrators were interviewed for this study. The data were analyzed descriptively using images and tables. The red chili auction market mechanism began with farmers delivering red chilies, followed by gross weighing, sorting and grading, net weighing, the auction process, the announcement of auction winners, packaging, transportation, payment, and distribution of sales results. The effectiveness of the red chili auction markets in the Yogyakarta production center was rated as high for three indicators: auction market output, auction market flexibility, and the presence or absence of tension in the auction markets.