Bulog moves to foil rice price increase
Bulog moves to foil rice price increase
JAKARTA (JP): The National Logistic Agency (Bulog) yesterday launched a major market operation in rice to foil speculations that the price of the nation's staple diet will increase ahead of the Islamic Idul Fitri festivities.
Newly appointed Bulog chief Beddu Amang personally supervised the operation at the Cipinang and Pasar Minggu markets, informing traders of his intention and expectations from them.
The operation involves supplying rice to the market at prices below the going rate in the hope of bringing the prices down.
"We intend to run this operation as efficiently and effectively as possible," Beddu was quoted by the Antara news agency as saying.
Bulog yesterday released tons of its stock of imported rice in Jakarta, cutting prices by an average of Rp 25 down to Rp 750 per kilogram. "We hope distributors will fill the major markets with Bulog's discounted rice," he told the traders.
Under yesterday's operation, the price of Thai rice (with up to five percent of the grain damaged) was set at Rp 750/kg. Thai rice (25 percent damaged) at Rp 675/kg, Vietnamese rice (10 percent damaged) at Rp 660/kg, Vietnamese rice (25 percent damaged) at Rp 640/kg, Vietnamese (5 percent damaged) at Rp 750/kg and Myanmar (25 percent damaged) at Rp 600/kg.
To ensure maximum impact, Beddu plans to hold weekly consultations with major rice traders to review the operation.
Meanwhile, an early market operation to reduce the price of cooking oil has not had the desired effect, Beddu conceded.
The operation saw Bulog supplying 100,000 tons of cooking oil in 27 markets in five cities.
In Pasar Minggu, the price of a kilogram of unpackaged cooking oil of the Bimoli special grade was Rp 2,100, Rp 100 higher than a few days ago and well up on the Rp 1,380 charged by factories.
"It shouldn't really be more than Rp 1,500 a kilo," Beddu said.
Blaming distributors for hoarding their stock, he said the next market operation will simply circumvent the distributors. "We'll sell direct to retailers."
Beddu also announced Bulog's plan to import 250,000 tons of granular sugar from China, South Korea and Thailand to meet domestic demand and strengthen the agency's stock.
Bulog so far has already received a shipment of 5,700 tons from Thailand.
Beddu said Bulog also plans to launch a market operation on frozen meat ahead of the Idul Fitri holiday. (emb)