Rice procurement may hit 20-year low<\/p>\n
JAKARTA (JP): The State Logistics Agency (Bulog) estimated
\nyesterday that its domestic rice procurement may fall to 250,000
\nmetric tons this year, the lowest level in 20 years, due to a
\ndecline in rice production.<\/p>\n
Bulog chairman Beddu Amang, however, said that the agency
\nwould be able to meet the domestic demand with imports estimated
\nto reach three million tons this year.<\/p>\n
He said Bulog would import 3.1 million tons of rice if its
\nprocurement reached only 250,000 tons. \"But if the agency could
\npurchase 500,000 tons from local farmers, imports would be cut to
\naround 2.85 million tons,\" he told reporters after a hearing with
\nthe House of Representatives' Commission III for agriculture,
\nforestry and plantations, transmigration and food affairs.<\/p>\n
Bulog said its rice procurement in the January-to-May period
\nplunged 94 percent to 96,512 tons from 1.55 million tons in the
\nsame period last year.<\/p>\n
\"This year's procurement will likely reach only 250,000 tons.
\nIt is the lowest level in 20 years,\" Beddu said, adding that
\ndomestic procurement reached 1.95 million tons last year and 1.43
\nmillion tons in 1996.<\/p>\n
He said Bulog initially planned to buy about one million tons
\nlocally this year but the decline in production caused by the
\ndrought made it impossible to meet the procurement target.<\/p>\n
Bulog's rice stocks on May 28 stood at 2.5 million tons,
\nsugar at 592,686 tons, wheat flour at 325,000 tons and soybeans
\nat 102,596 tons.<\/p>\n
He said the rice stocks were sufficient for three months while
\nthose for sugar and other commodities could last up to 28 months.<\/p>\n
Beddu, however, ruled out a possible rice shortage in the
\ncoming months.<\/p>\n
\"Don't worry, our stocks will increase because our rice
\nimports continue to flow in from Thailand, China and Vietnam and
\nwe are still receiving rice aid from other countries.\"<\/p>\n
He added that Japan has pledged to supply 500,000 tons of rice
\nin soft loans with a 30-year maturity and 100,000 tons as a
\ngrant, Taiwan would sell 200,000 tons, China 250,000 tons and
\nVietnam 10,000 tons and Thailand would give 5,000 tons in a
\ngrant.<\/p>\n
The government is still negotiating for another 400,000-ton
\nrice grant from Japan and 100,000 tons from Taiwan, Beddu said.<\/p>\n
Recent reports have said Thai rice and sugar exporters have
\nstopped accepting Indonesia's letters of credit (L\/Cs) for rice
\nand sugar orders due to the uncertain conditions here.<\/p>\n
But Beddu said that Thai exporters had agreed to take
\nIndonesia's L\/Cs if they were opened by state banks and endorsed
\nby foreign banks in Singapore.<\/p>\n
Beddu also said yesterday that Bulog planned to invite local
\nand international tenders to buy commodities for the agency.<\/p>\n
\"We will no longer go to the international market quietly. We
\nwill invite foreign suppliers through international tenders if
\nnecessary. This will apply to any commodities,\" Beddu said.<\/p>\n
Beddu added that the subsidies on basic commodities would
\nremain until the economic situation improved to help remedy the
\npains of the common people.<\/p>\n
\"The International Monetary Fund has agreed on the subsidies
\nwhich will amount to Rp 5.3 trillion (US$460 million) to import
\nbasic commodities. The IMF has asked us to gradually remove the
\nsubsidies but this depends on the economic conditions,\" he said.<\/p>\n
The government's agreement with the IMF stipulates that
\nsubsidies on all commodities, except rice, must be abolished by
\nOct. 1.<\/p>\n
\"But if we are not able to scrap the subsidies, then we don't
\nhave to. We understand that the subsidies will burden our state
\nbudget, but on the other hand we have to help our people,\" Beddu
\nsaid. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rice-procurement-may-hit-20-year-low-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}