Jakarta, July 28 -- Indonesia plans to cut agricultural supply-chain stages from eight to three through Red and White Village Cooperatives (KDKMP), Agriculture Minister Andi Amran Sulaiman said, aiming to boost farmers' earnings and rural economies.

"The agricultural sector's main function is to shorten the supply chain. We are reducing it from eight stages to three," Amran said Tuesday.

Under the new scheme, the supply chain will connect farmers, cooperatives and consumers, he said.

Government calculations covering nine agricultural commodities show middlemen currently earn about Rp313 trillion, or roughly US$17.3 billion, from the supply chain, Amran said.

"If cooperatives capture only Rp50 trillion, or about US$2.8 billion, Rp263 t...