E. Java govt moves against imported rice

E. Java govt moves against imported rice

Ainur R. Sophiaan, The Jakarta Post, Surabaya

After a lengthy debate, East Java Governor Imam Utomo announced
on Friday a policy that bans the import of rice in a bid to
protect local farmers bracing for a big harvest.

"I had a meeting with relevant officials over the rice issue,
and I have now issued a decree to ban any kind of rice imports.
I'm convinced the trade minister will approve our policy," Imam
told reporters after the meeting at his office.

He threatened to unload and seize imported rice at the Tanjung
Perak seaport or any on its way to the province.

"I have instructed customs and excise and port officials, and
other related staff to stop any kind of rice imports. The rice
should be returned to the exporting countries." Imam said.

There are 1,152 tons of rice imported from India that await
disposal at Tanjung Perak seaport. The rice, packed in 48
containers, was ordered by Tani Nusantara cooperative in Jember.
The cooperative is led by Arum Sabil.

Also facing draconian measures are 6,000 tons of rice imported
by PT Louis Dryfood Indonesia in Gresik, near here. The rice is
being kept at the Gresik industrial estate.

Imam was responding to the flood of imported rice that had
poured into the province's markets over the past few months.

Provincial councillors of Commission B for the economy have,
on several occasions, found rice that was unaccounted for. They
suspected that the provincial logistics agency was involved in an
import scam, using state funds allocated to buy unhusked rice
from local farmers.

Early in June councillors discovered 12,000 tons of rice
imported from India hoarded by a supplier to the agency during
their unscheduled visit to the firm's premises. More imported
rice was found in the warehouses of Tani Nusantara cooperative
and a Gresik-based firm.

Provincial customs and excise data revealed that 17 importers
brought in 348,672 tons from Thailand, India, Vietnam, and
Australia in the first semester of 2002. Of the amount, 16,019
tons came from the World Food Program and 66,494 tons from the
State Logistics Agency for its rice for the poor program.

Reports said the imported rice had been mixed with the local
product before it was sold at a lower price.

Head of the provincial agriculture agency Mohammad Maksum said
that as of April local farmers had produced 4.9 million tons of
rice, or 58 percent of expected output.

East Java is among the country's major rice producers.