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)