Government must import rice to avert shortage<\/p>\n
Muninggar Sri Saraswati and Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
While the government has extended the ban on rice imports until
\nJune due to adequate local rice supplies, state-owned logistics
\ncompany PT Bulog is planning to import some 300,000 tons of rice
\nsoon in case there is an unanticipated shortage.<\/p>\n
\"I'm worried that rice producers will not be able to meet the
\nestimated rice stock of 2.25 million tons this year due to a
\npossible drought,\" said Bulog president director Widjanarko
\nPuspoyo after meeting Vice President Jusuf Kalla on Monday,
\nadding that the highest estimate for the rice stock would be only
\ntwo million tons.<\/p>\n
His forecast contradicted a statement made by Minister of
\nTrade Mari E. Pangestu on Dec. 28. Mari had said that based on
\ninformation from the Ministry of Agriculture, the rice stock
\nwould still be sufficient until June.<\/p>\n
However, Widjanarko argued that a forecast severe dry season
\nfrom July to December would affect the rice stock.<\/p>\n
He acknowledged that the rice import plan did not yet have
\ngovernment approval.<\/p>\n
Indonesia imports between 1.8 and 2 million tons of rice
\nannually. Last year, the rice stock was 1.9 million tons.<\/p>\n
The government imposed a ban on rice imports early last year
\nas it was optimistic that the country would become self-
\nsufficient in rice for the first time since the 1980s.<\/p>\n
Widjanarko has also voiced concerns that the low rice stock
\nwould cause the price to increase uncontrollably -- putting
\nanother burden on the people amid a fuel hike scheduled for
\nMarch.<\/p>\n
It is also feared that higher rice prices would trigger a
\nhigher inflation level, which is forecast to reach between 6.5
\npercent and 7 percent this year.<\/p>\n
A higher inflation rate will lead to declining purchasing
\npower and eventually affect consumer spending. Higher consumer
\nspending is a prerequisite for the robust domestic consumption
\nthat has helped boost economic growth since the 1997 economic
\ncrisis.<\/p>\n
Widjanarko said the government would conduct a series of
\nmeetings to discuss rice imports, since Vietnam, Thailand and
\nLaos may reduce their rice production in order to save water
\nduring the dry season.<\/p>\n
\"It will not be easy to import more rice because there is
\nlimited stock in rice-producing countries,\" he said, adding that
\nthe countries have ordered their farmers not to grow crops that
\nneed a lot of water such as paddy, in a bid to save more water in
\nanticipation of a severe dry season.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-must-import-rice-to-avert-shortage-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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