Ban on rice imports to be maintained through 2004

Ban on rice imports to be maintained through 2004

Zakki P. Hakim, Jakarta

The government will maintain the rice import ban throughout
the year, as the country's production is expected to meet
national demand, a senior official has said.

Minister of Agriculture Bungaran Saragih said on Tuesday
during a discussion with The Jakarta Post that in the past two
years domestic rice production had improved and the country might
reach self-sufficiency in the commodity this year -- a repeat of
the achievement made by the nation 20 years ago.

Quoting data from the Central Statistics Agency (BPS),
Bungaran said that last year national unhusked rice production
hit an all-time high of 52.1 million tons and it was forecast
that this year's output would increase to 53.7 million tons
thanks to a good harvest.

The nation first reached self-sufficiency in rice in 1984, but
it since had to import rice to meet domestic needs. Imports hit a
record 6 million tons at the peak of the economic crisis in 1998.
They declined to 1.8 million tons to 2 million tons annually over
the past several years.

Bungaran said that national rice output had been increasing
due to improved irrigation systems, integrated pest management
and improved technology application, particularly in the use of
fertilizers.

The ministry had spent Rp 4.5 trillion (US$489 million) over
the past three years to improve irrigation, which resulted in a
rise in harvests from twice a year to up to five times in two
years, he said.

Rather than using only urea fertilizer, farmers now use
compound fertilizers, which is a mixture of urea, phosphate and
KCL. This has proven to increase land productivity by 10 percent
to 20 percent.

The Ministry of Industry and Trade first imposed a ban on rice
imports in January, effective until June 1, in order to protect
farmers and help improve their welfare. It later extended the ban
until August, then announced that it would be evaluated every
month.

Under the current system, the Ministry of Agriculture has the
right to decide whether or not rice imports should be banned.
However, the Ministry of Industry and Trade issues the decree to
implement the decision.

When asked whether the nation would be able to maintain such
high production in the coming years, Bungaran said it depended on
whether future governments would maintain cheap rice and high
rice consumption policies.

Last year, the country, with its population of 220 million
people, consumed 135 kilograms (kg) of rice per capita, he said.

According to a ministry calculation, national consumption was
28 million tons to 30 million tons of rice, while the country's
production of 53 million tons of unhusked rice was equal to some
30 million tons of husked rice.

"However, every year an additional 3.1 million people eat
rice," he said.

In comparison, Japan had the same annual consumption of 135 kg
per capita 30 years ago, but the Japanese currently consumed only
60 kg per capita, he said.

Japanese people had shifted from consuming rice to beans,
vegetables, meat and fish, at the same time abandoning a cheap
rice policy, he said.

At the moment, Japan has the most expensive rice in the world.

"Should Indonesians reduce their annual consumption to 120 kg
per capita, the country would be able to export rice," he said.