Tue, 07 May 2002

Basic commodity prices likely to rise: Vendors

Damar Harsanto, The Jakarta Post, Jakarta

Traders at several markets in Jakarta forewarned consumers of a possible hike in the price of basic commodities next month following last Friday's fuel price increase.

Roesdi Syah, a wholesaler of husked rice at Cipinang rice market in East Jakarta and Asih, a vegetable vendor at Palmerah traditional market in Central Jakarta, both agreed that consumers had to be prepared for the increase, saying the effect of an increase in fuel prices usually takes a month before affecting the price of basic commodities.

"The impact of the recent fuel price hike on the prices of goods in the market may appear in the next two weeks at the earliest or a month at the latest," Roesdi said.

Roesdi who sells 10 tons of rice per day contended that the impact of the fuel price hike, so far, was insignificant as the supply of rice at the market was still abundant.

Another rice wholesaler, Nellys, revealed that the price of rice hovered at Rp 125,000 to Rp 175,000 per sack of 50 kilograms.

When the floods hit Jakarta in January and February, the price of rice increased to between Rp 160,000 and Rp 210,000 per sack as traders found it hard to transport their goods that resulted in a reduced supply of rice, Nellys said.

The government increased on Friday the fuel price by an average 14 percent for this month as part of its plan to increase domestic fuel prices every month until reaching their ceiling price. The gasoline price has reached its ceiling at Rp 1,750 per liter while the others, such as diesel fuel, have still to be increased further.

Meanwhile, vendors at several markets in the capital revealed on Monday that most basic commodities had hovered in a relatively stable price range for almost three weeks.

Beef was priced at Rp 38,000 per kilogram. Cooking oil sold at Rp 4,200 per kilogram, while white sugar sold at Rp 3,600 per kg. Flour was priced at Rp 3,800 per kilogram.

Asih, a vegetable vendor at Palmerah traditional market in Central Jakarta, revealed that vegetables might be among the basic commodities which would increase soon.

"Vegetables are very dependent on transportation services. So, if the transportation charge increases, many vendors will be unable to afford the transportation charge which in turn will reduce the supply in the market," said Asih.

Asih revealed that the price of vegetables, thus far, hovered at relatively stable levels for three consecutive weeks.

"Compared to last weeks' prices, the price of tomatoes and carrots have plummeted sharply to Rp 2,500 per kilogram and Rp 1,500 per kilogram respectively, from Rp 5,000 and Rp 3,000 last week," said Asih.

Asih said cucumbers were priced at Rp 1,500 per kilogram, a sharp plunge from Rp 3,000 last week.

According to her, it was because of the oversupply in recent weeks.

Santi Didik, a housewife at Kampung Melayu subdistrict in East Jakarta expressed anxiety about the expected price increase.

"I really hope the price of basic commodities will not increase as we've been burdened with the price increase of other goods," she said.