Bulog to avoid rice imports: Beddu Amang
Bulog to avoid rice imports: Beddu Amang
SEMARANG, Central Java (JP): Chief of the National Logistics Agency (Bulog) Beddu Amang asserted yesterday that starting in the upcoming 1996/97 fiscal year, Indonesia will sign no contracts for rice imports.
Speaking to reporters after a seminar on agriculture, Beddu said the decision was meant to spur Indonesia to reach self- sufficiency in rice.
"We have made a commitment not to rely on world rice supplies, which are sold in a very thin market with 12 to 14 million tons of rice a year," he told The Jakarta Post. Indonesia, he said, needs up to 30 million tons a year.
Beddu said that though Indonesia was presently still receiving rice imports, the orders were based on contracts signed last year.
Indonesia used to be the biggest rice importer in the world, but became self-sufficient in 1984. Rice exports exceeded imports until 1993, but the country has had to rely partly on imports since then.
In 1994, rice production fell to 46.6 million tons -- the lowest level in 15 years -- from 48.2 million tons in 1993. The decline was caused by unfavorable weather and plant diseases.
To prevent further rice shortages from reoccurring this year, Bulog last year signed contracts for huge rice imports. But rice harvests across the country for the current season -- which is expected to peak next month -- have unexpectedly shown favorable results.
Bulog, which is responsible for keeping rice prices at a stable level, is now burdened with procuring and storing rice from farmers on the one hand, and storing the huge imports on the other.
Beddu said yesterday Indonesia will continue its efforts to balance rice production with the increase in consumption, which is currently rising by 2 percent a year due to population and income growth.
"We are optimistic that we can achieve self-sufficiency in rice through various means, such as by using high-quality rice seeds, improving fertilizer distribution and opening up new rice estates outside Java," he said.
Asked about reports of rotten rice imported from Thailand, Beddu said 1,000 tons have been returned from the 12,000 tons imported. He pointed out that the deterioration was caused solely by leaks in the cargo vessels, making it the responsibility of the shipping lines to cover the losses.
Beddu said Bulog's procurement of rice from farmers has so far reached 30 to 50 percent of its target of two million tons for this harvesting season. The procurement, which is designed to prevent rice prices from falling below their floor prices, is expected to reach 100 percent in May, after rice harvests reach their peak.
He said that the low level of rice procurement is caused by favorable prices on the market, which is making farmers reluctant to sell their crops to the agency. The government recently stipulated Rp 480 per kg (20 U.S. cents) as the floor price for unhusked rice. (har/pwn)