Govt to expand food aid commodities to absorb farm surplus: Minister

The minister said the scheme aims to maintain a balance between supply and prices for farmers and livestock breeders when they experience excess production that could potentially depress market prices.

“So, when egg prices are falling, food aid does not have to include oil or rice, but can include eggs as well,” the minister said here on Thursday.

He added that the initiative is designed to absorb food products or staple foods that are experiencing excess production.

Santoso explained that this policy is being prepared following a decline in egg prices in several areas, particularly in Blitar, East Java.

The government has coordinated with the National Nutrition Agency (BGN) so that the local Nutrition Fulfillment Service Unit (SPPG) can absorb egg production from local farmers.

This step was taken to help raise egg prices closer to the highest retail price (HET) while protecting the welfare of farmers.

National egg production is currently experiencing a surplus of around 12 percent. The minister believes that while market demand exists, the government needs to regulate optimal absorption through state programs.

“Now, there is a 12 percent surplus for eggs, which is good for farmers. Efforts to absorb eggs are actually underway. We just need to properly manage the SPPG so that eggs can be absorbed,” he said.

In addition to eggs, the government will apply a similar approach to other food commodities.

If chicken prices fall below the HET, the BGN will be encouraged to increase absorption through the Free Nutritious Meals (MBG) program run by the SPPG.

The minister argued that the flexibility of food aid is one of the government’s key instruments for maintaining price stability while ensuring that farmers’ production is well absorbed in the domestic market.

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Translator: Maria Cicilia Galuh Prayudhia, Katriana