Bulog fails to stabilize rice prices in market places

Bulog fails to stabilize rice prices in market places

JAKARTA (JP): Rice prices continued increasing here yesterday
in spite of the market operation of the National Logistics Agency
(Bulog), which had increased supplies at market places.

"Bulog's supplies cannot help lower prices because the weight
of its rice always decreases by about 10 percent when we
reweigh," Alex, a trader at the Cipinang Rice Wholesale Market,
told The Jakarta Post.

"We have to pay the price for 100 kilograms of rice for each
sack provided by Bulog, but we actually receive only 90 kilograms
of it," Alex said.

"We, therefore, have to maintain our sales prices at current
levels, if we still want to get profits," he added.

Alex suggested that Bulog improve its system of market
operation to make it effective.

Another trader, Aban Sobari, noted an example that the price
of Pandanwangi rice increased to Rp 1,100 (51 U.S. cents) per
kilogram yesterday from Rp 1,000 last week and Saigon Bandung I
at Rp 920 from Rp 900.

The upward trends of rice prices is contradictory to the fact
that supplies at the wholesale market are always higher than
demand, he said.

The director of the wholesale market, Wiryo Martono, said the
rice stocks at the market, which are maintained at about 2,500
tons per day, has never been lower than demand.

Alex said the price increase has caused a decrease in the
volume of his sales by 30 percent.

Meanwhile, Antara reported that Bulog's market operation
yesterday caused a Rp 50 decline in rice prices in Lampung,
southern Sumatra.

The price of Rajalele rice, for example, yesterday sold at Rp
800 per kilogram, as compared to Rp 850 on the previous day.(02)