No price hike expected despite 2.7% crop drop
No price hike expected despite 2.7% crop drop
JAKARTA (JP): The expected 2.7 percent decline in rice
production this year will not raise prices because the National
Logistic Agency (Bulog) guarantees adequate supplies, the
agency's chairman, Ibrahim Hasan, said.
Ibrahim, who is also State Minister for Food, told reporters
here late on Tuesday that the agency will withdraw 650,000 tons
of rice currently borrowed by other countries.
"The Philippines will deliver 200,000 tons of rice next month.
Other borrowing countries such as Cuba and Zanzibar will repay
later," Ibrahim said.
He said Bulog is currently holding reserves of 1.1 million
tons of rice.
If the reserves and the repayment of rice from the borrowers
does not meet the demand on the domestic market, the agency will
import rice from other Asian countries under a counter-trade
scheme, he said.
Vietnam has agreed to supply Indonesia with 250,000 tons of
rice in return for fertilizer, he added.
This year's long dry season is expected to affect the
country's rice harvest. Minister of Agriculture Sjarifudin
Baharsjah said last week the drought has affected 189,253
hectares of rice fields, of which 33,286 hectares have been
destroyed.
Production
This year's rice production of unhusked rice in the country,
is estimated to reach only 43.31 million tons or 2.7 percent less
than the 47 million tons projected earlier this year.
Minister Ibrahin said that to stabilize rice prices, Bulog has
started selling the staple in towns where supplies have been
affected by the drought.
However, according to Bulog research, rice prices continued
increasing yesterday in Jakarta even though the agency had
intervened by supplying 700 tons of rice.
Some high-quality rice types, such as Cianjur kepala, sold at
Rp 1,142.95 per kilogram, compared to last week's price of Rp
1,100.
Sources at the Jakarta office of Bulog said the increasing
prices could be the result of speculations by some traders.
"They (traders) seem to keep rice in warehouses with the
expectation that prices will continue to increase in the coming
weeks," said a source who requested anonymity. (als)