Rini unwilling to ban rice imports<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
Minister of Industry and Trade Rini MS Soewandi is reluctant to
\nimpose a ban on rice imports as such a move would violate World
\nTrade Organization (WTO) laws, and create a heavier burden on
\nconsumers at home in the form of higher prices.<\/p>\n
\"I have to be very careful about it (halting rice imports),\"
\nRini told reporters on Monday.<\/p>\n
Last week, the president of state-owned logistics company
\nBulog, Widjanarko Puspoyo, demanded the minister ban rice imports
\nin a bid to avoid oversupply at home during the current harvest
\nseason and protect the interests of local farmers who were unable
\nto compete with cheaper imported products. The ban must last at
\nleast until September.<\/p>\n
Rini said the request would be difficult to implement as it
\nwould breach WTO laws, which allows member countries to impose
\nimport tariffs but forbid them from imposing trade barriers.<\/p>\n
She said a complete ban on rice imports would send the price
\nof the commodity higher at home thus creating a burden on local
\nconsumers. Rice is the main staple of the country's more than 220
\nmillion people.<\/p>\n
She said that based on the experience of her latest policy of
\nregulating the sugar trade at home (which has recently
\ncontributed to the surge in sugar prices here), the government
\nshould avoid regulating the trade of strategic commodities.<\/p>\n
Under Rini's sugar policy, only a select number of companies
\nare allowed to import sugar in a bid to help avoid oversupply.<\/p>\n
Rini said her office was now studying other mechanisms to
\nprotect local rice farmers during the current harvest season, but
\nmechanisms that did not breach WTO laws.<\/p>\n
\"I still have to discuss this with other related ministers,\"
\nshe said, declining to provide details.<\/p>\n
Previously, the Ministry of Agriculture and also the
\nIndonesian Farmers Association (HKTI) said the government should
\nraise tariffs on rice to help limit the entry of cheap imports.<\/p>\n
But Bulog argued that raising tariffs would not be effective
\namid the current condition.<\/p>\n
Widjanarko said that Bulog's warehouse facility had a limited
\ncapacity to absorb farmers' output.<\/p>\n
The price of unhusked rice at farm level has dropped to around
\nRp 800 per kg compared to the government's target of Rp 1,500 per
\nkg. Many blame this on the inflow of cheap rice products from
\noverseas.<\/p>\n
The country's unhusked rice output this year is expected to
\nreach some 52 million tons (or equal to about 32 million tons of
\nrice).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rini-unwilling-to-ban-rice-imports-1447893297",
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