Bulog to import up to 700,000 tons of rice

Bulog to import up to 700,000 tons of rice

Mochammad N. Kurniawan, The Jakarta Post, Jakarta

State Logistics Agency (Bulog) said on Thursday it planned to
import up to 700,000 tons of rice next year to help meet strong
domestic demand.

Bulog chairman Widjanarko Puspoyo said the imports were part
of Bulog's plan to supply about three million tons of rice next
year.

"It will be unavoidable to import rice," Widjanarko said
during a working meeting with House of Representatives Commission
III for agriculture and food affairs.

He didn't provide details.

He added that Bulog would buy around 2.2 million tons of rice
from local farmers next year.

Bulog is a state agency which is obliged to maintain domestic
rice supplies, distribution and price stability.

Widjanarko said that part of the Bulog rice imports would be
allocated to supporting the government social safety net program.

Bulog planned to seek about US$101.5 million in commercial
loans from the Islamic Development Bank to finance the rice
imports, he said.

Bulog would also seek another financing program including
grants from the U.S. government, he said.

So far, Bulog had reached agreement with the Vietnamese state-
owned company Southern Food Corp., to buy 500,000 tons of rice,
he said.

But, he added, the realization of the plan would depend on the
domestic harvest next year.

According to Widjanarko, Bulog would pay for the rice to be
bought from Vietnam with "differed payment" over two years.

At present, Bulog rice stocks reached 1.4 million tons, he
said, adding that these stocks would be used to meet domestic
demand until March of next year.