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.