Government to review rice import tariffs regularly<\/p>\n
JAKARTA (JP): The government will review rice import tariffs
\nonce every six months to protect local farmers from stiff
\ninternational competition, Minister of Agriculture Muhammad
\nPrakosa said on Tuesday.<\/p>\n
He said a tariff team at the finance ministry would regularly
\nreview rice duties based on rice production and prices both in
\nthe domestic and international markets.<\/p>\n
In addition, the level of the rupiah's exchange rate against
\nthe U.S. dollar would also be considered.<\/p>\n
\"International rice prices fluctuate, as does the rupiah's
\nvalue against the dollar. We will monitor those variables and
\nadjust the tariffs so it will not hurt local farmers,\" Prakosa
\ntold a media briefing.<\/p>\n
Last year, the government, with the agreement of the
\nInternational Monetary Fund (IMF), lifted import tariffs on rice
\nwhich exposed local farmers to free market competition with other
\nproducers from various countries.<\/p>\n
The policy discouraged local farmers from continuing their
\nactivities because their production was less competitive in terms
\nof quality and price than imported rice.<\/p>\n
Because of the change in administration and protests from
\nfarmers, the government, again with consent from the IMF, will
\nreimpose a 30 percent tariff on rice to protect local farmers.<\/p>\n
\"The purpose of imposing import tariffs is to close the gap
\nbetween the world and domestic prices of rice,\" Prakosa said.<\/p>\n
However, he noted that the government would keep the rice
\ntariffs at a certain level which would keep a 10 percent price
\ngap between local and imported rice.<\/p>\n
\"The figure was chosen to provide potential importers
\nincentives to import rice,\" he said, adding that imported rice
\nwas still required to meet national demand.<\/p>\n
He explained that the 10 percent difference would enable
\nbusinessmen to import rice when local production was low. On the
\nother hand, it would make imported rice more expensive when local
\nproduction was good.<\/p>\n
Indonesia's rice production this year is expected to reach
\n49.9 million metric tons of unhusked rice, an increase of 1.3
\npercent on last year's 49.3 million tons.<\/p>\n
Prakosa projected that rice production should improve to 51
\nmillion tons of unhusked rice next year, thanks to good weather
\nas well as the government's commitment to secure food sufficiency
\nand boost agribusiness.<\/p>\n
National corn production, meanwhile, is expected to reach 9.5
\nmillion tons this year and 10.5 million tons next year. Soybean
\noutput would be 1.4 million tons this year and 1.5 million tons
\nin 2000.<\/p>\n
The fishery industry is projected to produce 5.7 million tons
\nof fish and fishery products this year and 6.59 million tons next
\nyear. Exports of fishery products are projected to reach 808,000
\ntons this year worth US$2.44 billion and 1.05 million tons next
\nyear worth $3.7 billion.<\/p>\n
The country's livestock population is projected to reach 12.18
\nmillion this year and 12.5 million next year. (06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-review-rice-import-tariffs-regularly-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}