Cooperatives to help secure national rice stocks: Official
Cooperatives to help secure national rice stocks: Official
JAKARTA (JP): The Ministry of Cooperatives and Small Enterprises will prepare 2,583 village cooperatives (KUD) and Rp 144 billion (US$62.88 million) to assist the government in building up national rice stocks, an official says.
Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya said the KUDs would help the government to buy rice from farmers, thus contributing to the national food stock which is expected to reach 1.7 million tons of rice equivalent this year.
"We can optimize the KUDs' operations because it seems that the current harvesting season is taking place at the same time across the country," he was quoted by Antara as saying.
Subiakto's remarks came as a response to recent news reports which said KUDs were not quick enough to buy rice from the farmers and, as a result, were outdone by brokers.
The rice-harvesting season started almost simultaneously in various parts of the country about two weeks ago.
Subiakto said the 200 KUDs operating in rice-producing areas, especially in the northern coast of Java, have clinched deals to provide credits for procuring rice for the national stocks.
The government earlier this month raised the floor price of unhusked rice by Rp 50 to Rp 450 (19.9 U.S. cents).
The new floor price raised the price of unhusked rice to be paid by KUDs by 12.02 percent to Rp 466 per kilogram and other buyers by 11.02 percent to Rp 460 per kg.
The price of husked rice also increased by 12.33 percent to Rp 738 per kilogram for KUDs and by 11.96 percent to Rp 730 for other buyers.
The National Logistics Agency, which is charged with maintaining the price stability of several important foodstuffs including rice, reported that its rice stock last month reached 1.82 million tons.
The stock came from procurement from farmers, imports and carry-over stock from last year.
Last year, the logistics agency had to relax its quality threshold for rice to be procured from farmers. Farmers at that time were more interested in selling their grain to the market, which offered more favorable prices.
Late last year, the price of rice soared in various areas across the country, causing the government to postpone the annual increase in rice prices. (pwn)