Bulog plans large market operation to stabilize prices
Bulog plans large market operation to stabilize prices
JAKARTA (JP): The State Logistics Agency (Bulog), the government's buffer stock agency for staple foods, plans a massive market operation to stabilize rice prices during the fasting month and the Idul Fitri holiday.
Bulog's Chairman Beddu Amang said yesterday that the agency will release 90,000 tons of rice from its stocks this month and another 50,000 tons in February in its market operation plan.
"If it is needed, Bulog will increase the volume of rice to be sold at marketplaces," he told newspeople after meeting with President Soeharto.
During the meeting, he reported his agency's preparations in welcoming the Islamic fasting month, which will begin next week, and the Idul Fitri celebration after the fasting month ends -- when the demand for staple foods will be unusually higher.
Beddu also reported to the President on the outcome of the recent congress of the Association of Agriculture Experts, which he chairs, in yesterday's meeting.
Beddu said that the rice stocks held by Bulog reached around 1.82 million tons early this month, which are sufficient to back up the agency's market operation for five months.
He said that the stocks of sugar and wheat, which respectively totaled around 404,835 tons and 142,915 tons early this month, are also adequate to curb a possible increase in the prices of the two commodities during the fasting month and Idul Fitri.
In addition, the agency will also import around 337,000 tons of sugar and 483,000 tons of wheat this month and next month to back up the supply of the two commodities.
Bulog also plans to sell around 90,000 tons of cooking oil on the market in the next two months to stabilize its prices.
"The market operation in stabilizing cooking oil prices will be carried out in Jakarta, Surabaya (East Java), Bandung (West Java), Semarang (Central Java) and Yogyakarta," he said, adding that cooking oil bearing brand names will be sold at Rp 1,900 (85 U.S. cents) a liter and those without brand names at Rp 1,300 per liter.
The demand for beef will increase by 900 tons to 4,650 tons during the fasting month and Idul Fitri, while that for chicken is expected to increase to around 300 tons per day.
He said that the beef supply on the market is expected to reach 6,921 tons during the fasting month and Idul Fitri, which will be much higher than the demand.
An additional supply of 1,500 tons of beef is also expected from overseas.
The supply of chicken is estimated to reach between 500 and 650 tons per day, much higher than the demand. (hen)