Bulog will not import rice this year<\/p>\n
JAKARTA (JP): Chairman of the State Logistics Agency (Bulog)
\nBeddu Amang said yesterday Indonesia would not import rice this
\nyear as stocks were sufficient to meet a possible shortfall in
\nproduction.<\/p>\n
"We need not import rice. We have sufficient rice stocks,"
\nBeddu said after a ceremony to accept the audit results from the
\nDevelopment and Finance Control Board.<\/p>\n
Beddu said the agency, which has been granted the monopoly
\nover rice imports as part of its function to stabilize domestic
\nfood prices, had 2.7 million tons of rice in its storehouses
\nacross the country, including 500,000 tons of imported rice.<\/p>\n
Beddu acknowledged that the quality of the 500,000 tons of
\nimported rice was worsening but he said the agency could make 90
\npercent of it eatable through special technology.<\/p>\n
He projected the agency would still have one million tons of
\nrice in stock by the end of March next year.<\/p>\n
But the DPA press agency reported yesterday that Thai rice
\ntraders expect to meet this year's export targets due to the
\ngreater demand in Indonesia and to a competitive price advantage
\nbecause of the baht's depreciation.<\/p>\n
"Usually Indonesia has to import between 500,000 and 600,000
\ntons of rice per annum to meet local demand, but this year
\nbecause of drought and forest fires they will need to import
\nmore," said the managing director of the Thai Rice Exporters
\nAssociation, Somboon Patchaicharn.<\/p>\n
Patchaicharn said Indonesia would need to import Thai rice,
\nalthough it is usually more expensive than rice from Vietnam and
\nIndia because of depleted stockpiles in those countries.<\/p>\n
Beddu said farmers have raised rice prices due to the drought
\nand failed crops in several areas.<\/p>\n
But the price increase was still within an acceptable level of
\n2 percent, he said.<\/p>\n
"We think an increase in the rice price of between 2 percent
\nand 3 percent is still reasonable," he said.<\/p>\n
Minister of Agriculture Sjarifudin Baharsjah earlier said the
\ncountry's unhusked rice production this year was estimated to be
\nthe same as last year, which was 50 million tons. Any decline
\nwould not be more than 0.9 percent.<\/p>\n
He said production was likely to increase 2 percent despite
\nthe prolonged season.<\/p>\n
Beddu said the agency had been audited by the Development and
\nFinance Control Board with an unqualified opinion for the fiscal
\nyear of 1996\/1997.<\/p>\n
"We made a profit of Rp 30 billion (US$10 million) this fiscal
\nyear (1996\/1997)," he said. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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