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