Govt won't import rice despite drought forecast

Govt won't import rice despite drought forecast

JAKARTA (JP): National Logistics Agency (Bulog) chief Beddu
Amang said yesterday Indonesia is unlikely to import rice this
year despite forecasts of severe drought in many parts of the
country.

Speaking to members of the House of Representatives'
commission VII on food and finance, Beddu said Bulog was ready to
supply the market with 650,000 to one million tons of rice in
case of sharp price hikes.

"Although rice production is expected to decline 0.92 percent
from 51.1 million tons last year, rice procurement this year has
so far been successful, increasing stocks to a sound level," he
said.

It was therefore unlikely that Indonesia would have to import
rice this year, he said.

He said Bulog's rice procurement from farmers had so far
reached 1.85 million tons, about 60 percent higher than that
achieved in the same period last year.

"The first dry season harvest this year has been quite
favorable. It is a sign that Bulog can continue procurements,
although perhaps at a slower rate," he said.

Beddu said domestic procurements this year were expected to
reach about two million tons.

Bulog, set up in 1967, is in charge of controlling the
distribution and price levels of several important food
commodities through market operations and buffer stocking
activities.

The government designates the agency as the sole authority for
the importation and distribution of rice and other agricultural
products.

Beddu said the agency's rice stocks currently stand at 3.2
million tons. The stocks, spread throughout the country, are
enough for six months supply.

"This level is the highest we have had in the last 12 years.
This will make our job of controlling rice prices much easier,"
he said.

Beddu said in some parts of the country, rice prices had
started increasing in the past few weeks.

He said the increase was "normal" and always happened during
the transition period between the big harvest season and the
upcoming dry harvest season which was usually smaller in scale.

Beddu said he had ordered the agency's provincial offices to
carry out market operations as soon as rice prices exceed the
normal level.

"Prices that increase about 1 percent a month can still be
considered normal," he said.

Media reports have lately carried news on severe droughts in
Sumatra, Java and Kalimantan.

Beddu said the most severely affected areas on Sumatra island
were Aceh and South Sumatra. In South Sumatra, the drought also
reduced rivers' water levels, the main mode of transport.

In Java, severe drought hit the major rice producing regencies
of Indramayu, Subang, Karawang, Purwakarta, Bandung and Bekasi in
West Java.

The water in several dams in Central Java declined to levels
below normal.

In Kalimantan, the drought affected the transportation system
which relies heavily on rivers. Lower water levels made it
difficult for boats to reach the island's remote areas,
particularly those located upstream.

Drought has so far not affected the eastern islands of
Sulawesi, Maluku, Irian Jaya, Bali, Nusa Tenggara and East Timor,
which occasionally received showers of rain. (pwn)