Bulog backs rice price hike

Bulog backs rice price hike

JAKARTA (JP): The National Logistics Agency (Bulog) supports a proposal from the association of rice milling companies to raise rice prices by about 2 to 3 percent during the dry season.

The agency's chairman, Beddu Amang, said here yesterday that the increase in rice prices by that level is rational.

"I think a 2-percent increase will not hurt consumers," Beddu told newsmen about Bulog's response to the recent proposal of the association.

The association said in its proposal to Bulog that an increase of rice prices during the dry season is essential to offset their higher production costs.

Beddu acknowledged that unlike in the harvest season, production costs in the dry season are much higher. An increase in rice prices during the dry season is, therefore, important. (hen)