RI to wait to sign rice import contracts<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Rahardi Ramelan
\nsaid on Tuesday that the government would not sign any new
\ncontracts to import rice until May or June.<\/p>\n
Speaking at a hearing with the House of Representatives, the
\nminister said that the delay would protect farmers from falling
\nrice prices.<\/p>\n
\"We will sign new import contracts only after April...
\nbecause we will have good harvests. New import contracts may be
\nsigned either in May or June,\" he said during a hearing with
\nHouse Commission III for agriculture, forestry, transmigration
\nand food affairs.<\/p>\n
The Central Bureau of Statistics predicted the country could
\nproduce 48.6 million tons of unhusked rice, or 29 million tons of
\nmilled rice, this year. Indonesia is likely to import between two
\nmillion and three million metric tons of rice this year to meet
\ndemand, which is expected to reach 33 million tons of milled
\nrice.<\/p>\n
Rahardi said that the imported rice from the new contracts
\nwould likely arrive in August or September.<\/p>\n
He predicted that the country's rice supply would be tight
\nafter the end of the harvest in April and in the May to June
\nperiod when the country will see some big political events,
\nincluding the general election.<\/p>\n
Rahardi also said the government would not impose an import
\nduty on rice for the time being so the price of imported rice
\nwould not disrupt local prices.<\/p>\n
\"We have agreed there will be no import tax on rice for the
\ntime being. The decision was made during the economic ministers
\nmeeting. The time to impose an import tax on rice has not come
\nyet.\"<\/p>\n
Rahardi said the government did not consider imported rice a
\nthreat to local rice, adding international prices of rice
\nfluctuated sharply, making importers reluctant to do business.<\/p>\n
\"Rice imported by private companies is mostly top-quality rice
\nand the amount is very limited. This will not disrupt the price
\nof the medium-quality rice produced by our farmers.\"<\/p>\n
The country liberalized regulations on the import of rice and
\nother basic commodities as part of its September agreement with
\nthe International Monetary Fund. Rice imports used to be
\nmonopolized by Bulog.<\/p>\n
Private companies have been allowed to import rice exempted
\nfrom import duties since Sept. 22.<\/p>\n
State Minister of Food and Horticulture A.M. Saefuddin earlier
\nsuggested 40 percent import duties on rice on the grounds that
\nthe price of imported rice was cheaper than locally produced
\nrice, causing the price of local rice to fall.<\/p>\n
Rahardi also denied that Bulog still controlled the sugar,
\nwheat flour and soybean trade, saying that the agency would deal
\nsolely with rice once it had sold its remaining stocks of other
\ncommodities.<\/p>\n
Rahardi said that the government imported 4.1 million tons of
\nrice, 1.7 million tons of sugar, 3.2 million tons of wheat and
\n641,000 tons of soybeans in 1998.<\/p>\n
He said Bulog's stock of sugar stood at 693,628 tons, wheat
\nflour at 542,042 tons and soybean at 178,843 tons.<\/p>\n
\"The stocks will be released gradually onto the market so they
\nwon't disrupt market prices. Once they are sold, we will not buy
\ncommodities other than rice,\" he said. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-to-wait-to-sign-rice-import-contracts-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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