Bulog says rice reserves enough for seven months<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The State Logistics Agency (Bulog) said on Friday it had enough
\nrice reserves to maintain price stability at home amid rising
\nuncertainty on the international market as a result of the war in
\nIraq.<\/p>\n
Bulog chairman Widjanarko Puspoyo said that the agency's rice
\nreserves of about 1.4 million tons was enough for seven months.<\/p>\n
Speaking to reporters on the sidelines of a workshop, he said
\nthat the above figure had taken into account some 500,000 tons of
\nrice imports from Thailand and Vietnam.<\/p>\n
"We have secured contracts to import some 500,000 tons of rice
\nto anticipate the impact of the war in Iraq," he said, adding
\nthat 300,000 tons would come from Thailand and the remaining
\n200,000 tons from Vietnam.<\/p>\n
Bulog's main mission is to ensure the stability of rice prices
\non the domestic market. If the price increases for whatever
\nreason, including harvest failure or market speculation, Bulog
\nreleases its reserves to stabilize the price, and vice versa.<\/p>\n
Rice is a politically sensitive commodity here as it is the
\nmain staple of the country's more than 200 million people.<\/p>\n
Widjanarko acknowledged that it was now getting more difficult
\nand expensive to purchase rice on the international market as
\nother countries were also boosting their reserves due to the
\nuncertainty created by the Iraq war.<\/p>\n
He expected the war would not drag on for more than seven
\nmonths.<\/p>\n
The country's unhusked rice output is expected to reach some
\n52 million tons this year. This is roughly equal to 30 million
\ntons of rice.<\/p>\n
Bulog normally holds a buffer stock of around 3 million tons,
\nboth purchased on the local and international markets.<\/p>\n
Indonesia briefly achieved self-sufficiency in rice in 1984,
\nbut is now one of the biggest rice importers in the world.<\/p>\n
Meanwhile, Minister of Trade and industry Rini M. Soewandi
\nsaid the country would have an adequate sugar supply over the
\nnext five weeks without having to import as sugarcane milling had
\njust started.<\/p>\n
"The sugar supply will be secure for the next five months as
\nsugarcane milling will be underway at home," Rini told reporters.<\/p>\n
The country's sugarcane milling normally starts in April and
\nMay.<\/p>\n
But just in case, Rini said the country would import sugar
\nfrom India and Thailand to help ensure adequate supplies at home.<\/p>\n
"We will discuss the transportation problem with the shipping
\nassociation to ensure the shipments arrive here," she said.<\/p>\n
There have been worries that the war in Iraq would make
\nimporting sugar more difficult.<\/p>\n
Indonesia is one of the world's top sugar importers, absorbing
\naround 1.6 million tons last year.<\/p>\n
The country's total sugar production is currently 1.7 million
\ntons with annual consumption amounting to about 3.3 million tons.<\/p>\n
Indonesia imported 2.1 million tons of sugar in 1999, 1.2
\nmillion tons in 2000 and about 1.6 million tons in 2001.<\/p>\n
The ministry has authorized three state-owned plantation
\ncompanies and PT Rajawali Nusantara Indonesia to import sugar to
\nmeet the country's needs and help increase the price of the
\ncommodity at the grower level.<\/p>\n
Aside from the four companies, many private sector companies
\nalso illegally import sugar for the domestic market, but no data
\nis available on these imports.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-says-rice-reserves-enough-for-seven-months-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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