Prices of Rice and Sugar Rise, Batam Trade and Industry Office Yet to Conduct Surprise Inspections
Several traders at Batam’s markets have reported increases in the prices of packaged rice and granulated sugar in recent weeks. These price hikes have also prompted complaints from micro, small, and medium enterprise (MSME) operators, as they impact rising production costs.
Traders report that packaged rice is now selling at higher prices than previously. A similar situation has occurred with granulated sugar, which has experienced increases at the market level. This has prompted some buyers to reduce their purchase quantities or to become more selective when shopping for basic commodities.
One trader noted that price increases have been noticeable over the past several weeks. According to him, prices from distributors have already risen, leaving traders with little choice but to adjust their selling prices.
“Prices from the distributor have already gone up, so we have to adjust as well. If we don’t raise prices, we’re the ones who lose,” said Arman, 34, a trader at Batu Aji Market, on Sunday (8 March).
Other traders have also acknowledged that price increases are causing buyers to hold back on purchases. Some customers are even choosing to buy in smaller quantities than usual.
“Nowadays many people buy only what they need. Usually they take two or three kilograms, but now just one kilogram,” said Narto, 30, another trader.
Traders reported that the price of one-kilogram packages of granulated sugar, which previously ranged from Rp15,000 to Rp16,000 per kilogram, has now risen to approximately Rp17,000 to Rp18,000 per kilogram. Meanwhile, packaged rice, which previously sold for about Rp14,000 to Rp15,000 per kilogram, now reaches Rp16,000 to Rp17,000 per kilogram.
These increases in basic commodity prices are also being felt by MSME operators, particularly those in the culinary sector. They report that profit margins are increasingly squeezed as raw material costs rise, whilst product selling prices cannot be immediately increased.
“If raw material prices keep rising, we are forced either to reduce profits or cut production. If we raise selling prices, we fear we’ll lose customers,” said one MSME operator.
Meanwhile, to date, Batam City’s Trade and Industry Office has not been seen conducting surprise inspections (sidak) at markets regarding these price increases.
When asked about the situation, the Head of Batam City’s Trade and Industry Office, Suhar, directed enquiries to the Head of Trade Division, Wahyu Daryatin. However, until this report was published, Wahyu Daryatin had not provided a response regarding the rises in prices of packaged rice and granulated sugar in the market.
Traders and MSME operators hope that the local government will soon conduct field inspections and ensure adequate supply availability so that basic commodity prices can return to stable levels.