Govt must take measures to keep rice prices intact<\/p>\n
JAKARTA (JP): The government must make an all-out effort to
\nkeep rice prices from falling below the official floor price so
\nfarmers are protected against unfavorable market conditions, an
\nagricultural economist says.<\/p>\n
Bungaran Saragih, the director for the Bogor Agricultural
\nUniversity's Center for Development Studies, said the National
\nLogistic Agency (Bulog) has committed itself to stabilizing rice
\nprices and this should be done so at all costs.<\/p>\n
\"This is an promise the government must keep. There should be
\nno excuse, such as lack of funds, for them not to do it. That's
\nonly fair,\" he told The Jakarta Post over the weekend.<\/p>\n
Saragih acknowledged that although the present situation was
\ngood for the country's rice stock, it is bad for farmers if it
\nmeans they receive extremely low prices for their rice.<\/p>\n
The Ministry of Agriculture's Director General of Food Crops
\nand Horticulture, Amrin Kahar, said last week that national rice
\nproduction from the 1995-1996 planting seasons was estimated to
\nexceed the targeted 51.1 million tons of unhusked rice.<\/p>\n
Until the end of last year, production had already reached
\n49.8 million tons.<\/p>\n
The Central Bureau of Statistics had earlier predicted rice
\nproduction for the current planting season to grow by 3.89
\npercent from the previous year's 46.5 million tons.<\/p>\n
But until last year, the Agricultural Ministry had already
\nrecorded an increase of up to 6.9 percent.<\/p>\n
Amrin said some seven million hectares of rice fields were
\nready to be harvested later this month and the yield was expected
\nto exceed the amount targeted for the country's rice stock.<\/p>\n
Head of Bulog Beddu Amang said earlier last week that Bulog's
\nwarehouses were ready to accommodate all the rice it had bought
\nfrom farmers that was needed to keep prices stable.<\/p>\n
Nervous<\/p>\n
Saragih said Bulog seemed \"nervous\" this year, after having
\nfailed three years ago to procur enough rice for the national
\nstockpile (two million tons).<\/p>\n
In 1993, Indonesia lost the self-sufficiency in rice it had
\nenjoyed since 1984, because rice production dropped due to
\nfloods, droughts and diseases. Since then, Indonesia has had to
\nrely partly on imports.<\/p>\n
In an attempt to establish a buffer stock to bring down
\nprices, Bulog was forced last year to relax quality standards for
\nrice bought from farmers.<\/p>\n
Bulog's imports of rice for the current planting season,
\naccording to sources, has so far reached some 3.6 million tons.
\nBeddu said imports of foodstuff, based on contracts signed last
\nyear, would continue arriving until around April.<\/p>\n
Saragih said the huge imports, which arrived together with
\nthis year's massive rice production were a consequence of
\n\"inaccurate predictions\".<\/p>\n
\"There is nothing much we can do. The fact is that the climate
\nhas been good for rice. Now the government must not let prices go
\ninto freefall,\" he said.<\/p>\n
Observers are skeptical whether the government can keep its
\npromise to buy and store all the rice from farmers. Others say
\nBulog will probably just tighten quality requirements for the
\nrice it buys from farmers.<\/p>\n
\"A lot of money will be needed this year for rice procurement
\nand I am sure it will be a very tough job for the government,\" he
\nsaid.<\/p>\n
\"But it's good that we have so much rice, especially since we
\nwill soon be having general elections,\" Saragih added. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-must-take-measures-to-keep-rice-prices-intact-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}