Bulog to send free rice to drought-hit areas

JAKARTA (JP): The National Logistics Agency (Bulog) will intensify its efforts to overcome problems caused by this year's severe dry season by distributing rice free of charge to affected farmers and expanding marketing networks.

State Minister of Food/Chairman of Bulog Ibrahim Hasan told reporters in a press conference here yesterday that Bulog will hold a special market operation for regions with zero purchasing power by providing free rice to the poor.

Ibrahim said the implementation of the free of charge operation will depend on the proposals of governors and regents, whose territories have been hard hit by the drought.

"There have been no governors or regents asking for the free supply of rice thus far," he said. "Governors and regents are probably ashamed of reporting any shortage in the rice supply, even if their areas are affected by drought," Ibrahim said.

Bulog distributed 900,000 tons of rice in drought-affected areas between 1991 and 1993.

Ibrahim said Bulog, paying heed to complaints that its market operation has reached only areas close to its distribution points, will expand its distribution networks to make the operation more effective.

Bulog has sold rice in 16 of the country's 27 provinces through its market operation.

The minister said the current increases in rice prices have been caused mainly by the speculations of traders, who have exploited the people's fear of a possible decrease in supplies.

However, Bulog's Deputy Chairman Beddu Amang acknowledged that the price increases have also been caused by a delay in harvests from February to April. The delay has also caused Bulog to draw down part of its stocks.

He said that as long as the rates of the price increase only range between one and two percent, the increase will still be tolerable.

Ibrahim explained that the price of Bulog's rice is set at Rp 675 (31 U.S. cents) per kilogram at its warehouses and at Rp 685 at its distribution points.(02)