Bulog to import rice from China
Bulog to import rice from China
The Jakarta Post, Jakarta
The State Logistics Agency (Bulog) will import 250,000 tons of
rice from China to secure rice supplies in the country in
anticipation of possible harvest failure caused by the El Nino
weather phenomenon.
Bulog chairman Widjanarko Puspoyo said on Thursday the planned
imports had been agreed upon by the Indonesian government and the
Chinese government during President Megawati Soekarnoputri's
visit to China late March.
The memorandum of understanding for the rice deal is expected
to be signed next month, while the delivery is expected to arrive
in November, which is a period of rice scarcity in the country,
Widjanarko was quoted by Antara as saying on the sidelines of
Bulog's meeting with the House of Representatives' Commission III
for agriculture and food affairs.
It is not yet decided whether Bulog will pay for the rice in
cash or through a countertrade scheme, according to Widjanarko.
"China is basically OK with a countertrade scheme and they
have asked for crude palm oil in return for their rice. But, this
can be changed," Widjanarko said.
Bulog aims to import one million tons of rice this year amid
fears that the El Nino effect, which caused a long drought and
harvest failure in 1997, will return this year.
Aside from China, the agency will import another 500,000 tons
from Vietnam, 200,000 tons from Thailand and 50,000 tons from
Cambodia.
The import of rice from Thailand will be conducted through a
countertrade scheme, in which Indonesia will provide Thailand
with train cars, aircraft and ammonia.
Aside from Bulog, private traders are projected to import two
million tons of rice this year, bringing the country's total rice
imports to three million tons. This year, the country's unhusked
rice production has been estimated at 48.5 million tons.
Indonesia reached self sufficiency in rice in 1984, but it has
since imported the basic commodity due to an output shortage.
Last year, rice imports reached 1.5 million tons.