Food Station CEO Warns of Potential Rice Shortage in Modern Retail Outlets

JAKARTA, KOMPAS.com - PT Food Station Tjipinang Jaya has warned of a potential shortage of rice in modern retail outlets such as Indomaret, Alfamart, and SuperIndo. This situation is triggered by high production costs that are discouraging producers from supplying rice to that segment. Food Station’s President Director, Dodot Tri Widodo, stated that the cost of goods produced (HPP) for rice has now exceeded the government’s maximum retail price (HET). According to him, the cost pressures stem from rising prices of paddy and other raw materials. Currently, the price of paddy in the market has reached around Rp7,500 per kilogram. When processed into rice, the production cost can reach approximately Rp15,000 per kilogram. This condition could lead producers to incur losses if they continue selling rice to the modern market. Therefore, Food Station has begun withholding supplies to modern retail. “Requests from Indomaret, Alfamart, and then Superindo, we are putting on hold for now, because if we fulfil them, it’s a loss upon loss,” Dodot explained. He added that if this situation persists, modern-grade or premium rice could become increasingly difficult to find in retail markets. Dodot emphasised that this problem is not unique to Food Station but is faced by nearly all players in the rice industry. The high production costs are making the rice business less profitable.