Bulog suffers losses in market operation

JAKARTA (JP): The National Logistics Agency (Bulog) suffers a loss of at least Rp 200 per kilogram of imported rice used in its market operation, its chairman said.

Beddu Amang claimed the subsidy was necessary in order to stabilize the staple's price in domestic markets.

"But it doesn't matter to suffer a loss once in a while," he said when inspecting the Cipinang market with Minister of Industry and Trade Tunky Ariwibowo on Tuesday.

The country has imported rice from Thailand to anticipate a possible drop in rice production this year.

Beddu said these imports had already reached 100,000 tons.

Another 300,000 tons would arrive next month, he was quoted as saying by Antara.

Minister of Agriculture Sjarifudin Baharsjah said last week the country would have to import up to one million tons of rice in anticipation of a late harvest in 1998.

The long dry season last year could delay seedling and crop periods by up to six weeks.

Last month, an estimated 500,000 tons of rice entered the markets through the market operation mechanism.

Beddu said the imported rice was of medium quality, with broken levels between 25 percent and 10 percent.

"The rice price can be controlled through imported rice of good quality," he said.

Prices have surged between Rp 200 and Rp 350 per kilogram during the last two weeks.

Pandan Wangi, a high quality rice brand, currently costs Rp 1,300 per liter, higher than prices between Rp 1,000 and Rp 1,100 in November.

Beddu said Bulog would also subsidize other imported commodities, including sugar. (icn)