Thu, 17 Sep 1998

Dolog denies auctioning rice

YOGYAKARTA: The Provincial Logistics Agency (Dolog) denied on Wednesday traders' accusations that it had auctioned its rice supplies to the highest bidders.

Several traders complained that they had to pay as much as Rp 2,800 a kilogram for Dolog rice, compared to the maximum official price of Rp 2,000 a kg.

"That's impossible," the head of procurement and distribution, Yudha Winata, said. "Anyone who does that stands to gain little but risks getting fired. It wouldn't be worth it," he reasoned.

Yudha said Dolog released its stocks of rice at Rp 1,850 a kg to wholesalers, who in turn sell to retailers at Rp 1,950.

"The retailers should sell it at Rp 2,000 to consumers," he said.

Any irregularities that caused Dolog rice to retail at higher prices in the market were likely to have occurred between the wholesalers and retailers, he said, adding that the agency would scrap wholesalers caught breaking the rules. (23)