Price of unhusked rice

Price of unhusked rice

From Kompas

Since publication in Kompas on Feb. 2, 1999, of a report on
the drop in the price of unhusked rice, many responses have
continued to dwell on the bureaucratic procedure. In fact, the
bumper harvest is past now and we must, actually, talk about the
operational and technical aspect of how to purchase as much
unhusked rice as possible, how to dry it and how to prepare the
warehouses to store it in.

Therefore, allow me to propose to the Ministry of Cooperatives
and the State Logistics Agency (Bulog) that they should
immediately provide adequate facilities to rural cooperative
units and regional logistics agencies (Dolog) in harvest areas to
implement the following scheme:

First, Bulog purchases the national stocks of rice and
unhusked rice. Centers of rural village cooperatives (Puskud)
will receive TMS unhusked rice with a water content level of
about 17 percent to be stored in temporary warehouses.

Second, this operation will be an additional activity (once
implemented by Puskud as well as by Bulog), which will increase
purchases of unhusked rice from the farmers and prevent the price
of unhusked rice from sliding. Unless this is effected
immediately, the price of unhusked rice between March and May
1999 will continue to drop despite the large amounts of money
available. This will only adversely affect the farmers, who have
resorted to unsubsidized production facilities for their rice
production.

In my opinion, KUD and Dolog, both frequently targets of
criticism, are still irreplaceable by other agencies in dealing
with purchases of unhusked rice from farmers in order to raise
the floor price of unhusked rice during a bumper harvest. It
should be noted that most farmers sell their unhusked rice at
harvest time so that the farmers' stocks of unhusked rice will
change hands to the traders. Unless this matter is handled
seriously, it will be too late to help the farmers.

JAYUS HARTONO

Sangyang Sri Farmers' Group

Karawang, West Java