Bapanas: Eight-Year High in Grain Prices Boosts Farmers, Rice Inflation Contained

The National Food Agency (Bapanas) has stated that the increase in grain prices to their highest level in eight years has successfully improved the welfare of rice farmers while keeping rice inflation under control. According to BPS data, the index of prices received by farmers reached 151.10 in July 2026, a record high reflecting more profitable grain prices.

Head of Bapanas and Minister of Agriculture Andi Amran Sulaiman emphasised that the government is maintaining a balance between the interests of farmers and consumers. He noted that while farmer welfare has increased, rice inflation remains manageable due to the strengthening of the Government Rice Reserves (CBP) and ongoing stabilisation programmes. The government currently holds approximately 5.2 million tonnes of CBP, which serves as a crucial instrument for maintaining supply balance, price stability, and national food security.

Amran stressed that maintaining a fair grain price is essential to keep farmers motivated to plant rice, thereby allowing Indonesia to sustain a production surplus and reduce dependence on rice imports. He highlighted that unlike 2023 and 2024, when the country imported up to 7 million tonnes, there were no medium rice imports in 2025. Bapanas also reported that the Farmers’ Terms of Trade (NTP) reached a record 127.84, with the Food Crops Sub-sector NTP rising to 116.16, driven by state logistics agency Bulog’s absorption of 3.57 million tonnes of the harvest at a minimum government purchase price of Rp6,500 per kilogramme.

Deputy for Food Availability and Stabilisation I Gusti Ketut Astawa added that the government continuously intervenes to maintain price balance by releasing CBP stocks. From January to July 2026, CBP distribution reached 1.45 million tonnes, including sales under the Food Supply and Price Stabilisation programme and the first phase of food aid. A second phase of food aid is planned to distribute 997,200 tonnes of rice to 33.24 million families. Throughout July 2026, the national average price for premium rice was Rp15,972 per kg, while medium rice averaged Rp13,564 per kg, within the stipulated highest retail price range.