Govt may import eggs for Idul Fitri: Rahardi

Govt may import eggs for Idul Fitri: Rahardi

JAKARTA (JP): For the first time, Indonesia may have to import
eggs in anticipation of shrinking supplies in the run-up to the
Muslim Idul Fitri celebration in mid-January, Industry and Trade
Minister Rahardi Ramelan said on Wednesday.

Rahardi said that judging by the soaring price of eggs, he was
concerned that the domestic supply was declining with the most-
celebrated Muslim holiday fast approaching.

"I have asked several companies to import eggs, and if these
imports are not enough, Bulog (the State Logistics Agency) will
also import eggs," he told reporters at a briefing on the
domestic food supply.

Rahardi did not specify the amount of eggs the country would
import, but he cited Thailand, Malaysia and Brunei as possible
suppliers.

In the past, food prices have normally risen before Idul
Fitri, forcing the government to intervene in the markets through
Bulog, which serves as a buffer agency for the government.
However, the agency's monopoly over food commodities has been
limited to rice this year.

This is the first time that the government has been concerned
enough to consider importing eggs.

The price of eggs has risen continuously this year, especially
within the last month as Muslims, who make up over 90 percent of
the country's population, began their observances of the holy
month of Ramadhan, and as Christmas and New Years celebrations
near.

Eggs have been sold at around Rp 8,000 in the past two weeks,
twice the normal price of Rp 4,000.

Earlier this year, as the rupiah's value bottomed out against
the U.S. dollar, many small and medium-sized poultry farms went
out of business following a sharp rise in the price of feed.

The farmers could not afford the rising prices on the imported
raw materials for fodder, forcing them to feed their chickens
rice husks or let the poultry die of starvation.

This forced many poultry companies to sell their chickens,
even those which had not matured enough to slaughter, lowering
the supply of chicken meat by 50 percent at the time.

In anticipation of higher demand for food products, Rahardi
also urged private companies to begin importing the food
commodities which had been freed from trade restrictions by the
government.

He said that despite the removal of import restrictions after
the lifting of subsidies, very few companies had begun to import
commodities like sugar, wheat and soybeans.

"I need to get this clear so there will not be confusion: all
importers are free to import these commodities and they should do
it now because demands are high while the rupiah's level against
the dollar is still below Rp 8,000," he said.

The rupiah now hovers at around Rp 7,500 to the U.S. dollar,
compared to the precrisis level of Rp 2,500. The rupiah hit a
low of around Rp 16,000 to the dollar earlier this year.

He dismissed suggestions that most of the importers had
difficulties obtaining trade financing, stressing that most
traders were not yet fully aware that they could now freely
import the products.

Many importers can not secure letters of credit from local
banks because the economic turmoil has severely damaged the
country's banking sector.

Minister of Cooperatives, Small and Medium Enterprises Adi
Sasono also said on Wednesday that he expected some 19,000
imported cattle to arrive from Australia before Idul Fitri.

He also said that Bulog currently had 415,000 tons of raw and
refined sugar in stock.

The Indonesian Distribution Cooperatives, which took over
Bulog's stock of palm oil when subsidies were removed from the
commodity, have 62,000 tons of cooking oil in stock, he added.
(das)