Logistic body to procure two million tons of rice
Logistic body to procure two million tons of rice
JAKARTA (JP): The National Logistic Agency (Bulog) will
procure at least two million tons of rice this year to increase
its stocks. The move is aimed at the stabilizing prices on the
domestic market, the agency's chief says.
"We will be more tolerant in the quality of rice to be
procured and raise transportation fees for village cooperatives
designated to collect the staple in a bid to encourage better
procurement," Beddu Amang told reporters after meeting with
President Soeharto at the Bina Graha presidential office
yesterday.
Beddu said that Bulog currently holds total stocks of 2.8
million tons of rice, comprising of 800,000 tons in buffer
stocks, 1.6 million tons in operational stocks and another
400,000 tons kept for market operations.
He explained that Bulog will be willing to buy rice with a
damaged grain content of up to 30 percent and moisture content of
up to 15 percent.
Over the last two years, Bulog has set requirements that the
rice to be sold to it should have a maximum damaged grain content
of 25 percent and a maximum moisture content of 14 percent.
Beddu said Bulog will also raise transportation fees for
village cooperatives supplying rice for the agency from Rp 8
(0.36 U.S. cent) per kilogram (kg) to Rp 17.50.
"Village cooperatives in Yogyakarta will even get
transportation fees of Rp 20 per kg," he said.
He said that besides domestic suppliers, Bulog will also
procure rice from imports.
"We hope the substantial procurement of rice this year will
improve the stability of prices on the domestic market," he said.
The government has set the floor price of rice paid by Bulog
to village cooperatives at Rp 657 per kg this year.
Palm oil
Beddu also told reporters that President Soeharto had
instructed him and his colleagues in the cabinet to formulate a
new ruling requiring all producers of palm oil in the country to
set aside part of their products for sale on the domestic market.
Currently, only state-owned plantation companies are required
to set aside part of their products for the domestic market.
State-owned plantation companies annually produce about 1.8
million tons of palm oil, of which 1.2 million tons are sold
domestically and the remainder exported, while private plantation
firms produce about 2.5 million tons a year.
"Private plantation companies will be required to set aside
part of their palm oil production for sale on the domestic
market, the demand of which is estimated at 2.5 million tons a
year," Beddu said.
He said he will soon hold meetings with related ministers to
formulate the new ruling. (riz)