Bulog to auction wheat stocks to private firms<\/p>\n
JAKARTA (JP): The State Logistics Agency (Bulog) will auction
\nabout 900,000 metric tons of wheat flour from its stocks to
\nprivate companies following the removal of the government's
\nsubsidy on the commodity.<\/p>\n
Bulog's acting chairman Rahardi Ramelan said Friday the wheat
\nflour would be sold to the highest bidders.<\/p>\n
"The wheat flour that Bulog owns will be put up for offer and
\nit will be sold to the most attractive bids," Rahardi, also the
\nminister of industry and trade, told reporters at his office.<\/p>\n
The move would reduce the agency's financial burden and help
\nto create fairer prices, he added.<\/p>\n
Before the subsidy on wheat flour, soybeans and sugar was
\nlifted last month, Bulog imported the wheat and appointed several
\nprivate milling companies owned by well-connected businessmen to
\ngrind the wheat into flour.<\/p>\n
The wheat flour was then distributed and sold to the market
\nthrough cooperatives and the agency's distribution arms at
\nsubsidized prices.<\/p>\n
The government removed subsidies on the three commodities to
\nmeet its reform comittment agreed on with the International
\nMonetary Fund (IMF). The only subsidy retained is on the
\npolitically-sensitive commodity of rice.<\/p>\n
Before the subsidy removal, Bulog was the only institution
\nallowed to import the wheat.<\/p>\n
The government estimated earlier that it needed to import 4.25
\nmillion tons of wheat this year, an amount equivalent to 3.15
\nmillion tons of wheat flour.<\/p>\n
Monthly domestic demand of wheat flour reaches 260,000 tons or
\nabout 3.12 million tons a year. In Jakarta alone, the demand is
\n32,000 tons a month. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-to-auction-wheat-stocks-to-private-firms-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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