Fri, 11 Jan 2002

Prices of rice up 30 percent in several areas in Java

The Jakarta Post, Jakarta

The price of rice has increased by nearly 30 percent in several areas in Central and West Java, and many are attributing that to the government's plan to increase fuel prices and electricity bills.

In Purwokerto, Central Java, low quality rice, IR, is now Rp 3,000 per kilogram, Rp 600 higher than before.

The price of Cisadane rice is now Rp 3,200 up from Rp 2,500.

In Majenang, Cilacap, also in Central Java, one kilogram of IR is Rp 3,200, Rp 700 higher than before.

Traders said on Thursday that the prices had been steadily increasing recently, since reports of the government's plan to increase kerosene prices was circulated almost two weeks ago.

Housewives in Majalengka and Cirebon, West Java, have also been upset after they found that the price of rice had increased by as much as Rp 800 per kilogram.

Traders at the markets of Pasar Pagi, Pasar Sumber and Pasar Kanoman in Cirebon, said in separate interviews that the lowest quality rice, IR 64, had risen to Rp 3,200 per kilogram and the best quality, Rojolele, is now at Rp 3,900 per kilogram nearly Rp 800 higher than it was just days ago.

Pete, a 47-year-old rice vendor at a traditional market in Purwokerto, said he was forced to sell the rice higher prices than before, "Because I bought it at higher prices too."

Another trader at the Wage market in Purwokerto, Suwasti, said the price hike also was occurring in other towns. "Rice is also now expensive in Purwokerto and Kebumen. The rice traders there charge us transportation fees for the rice," Suwasti said.

According to her, prices for many food items at the market, including rice, have been increasing recently.

Deputy head of the Banyumas Logistics Office Isturi Parwanto said that the price hikes were a response to the government's plan to increase the prices of fuel.

"There is no problem with the rice supply," he said. "We still have 36,900 tons in stock for the next five months."

In Cirebon, West Java, the speaker of the regency legislative council, Suryana, said the legislature would soon urge the logistics office to conduct market operations to control the price hikes.

"The scarcity of fuel has caused the increase in the prices of rice because transportation fees have also been soaring. The disappearance of unhusked rice from Indramayu, Kuningan and Arjawinangun -- the three districts known as the rice capitals of West Java -- has also contributed to the skyrocketing prices," he said.

He predicted that the price of the staple food would be normal by the third week of March, when the farmers will enjoy a good harvest.

Commission B, dealing with economic affairs, urged the logistics office to supply more rice through market operations.

"Greater supply will surely control the rice prices," commission B chairman Aris Kristanto said in Semarang on Thursday.

Meanwhile Nono Satria of the logistics office said market operations started on Wednesday in several markets in several towns. "A total of two tons of rice were sold in the market operations," he said, adding that the price was Rp 2,900 per kilogram.

Meanwhile the Cirebon logistics office has yet to conduct market operations, despite the instruction from the head of the National Logistics Agency (Bulog) Puspoyo Widjanarko.

The head of Cirebon logistics office M. Jibran was not available for comment.

Antara news agency reported from Malang, East Java on Thursday that local logistics offices had launched market operations at Pasar Besar in a bid to control the prices of rice.

"As a first step we sold 500 kilograms per day at the normal price of Rp 2,900 per kilogram," spokesman for the logistics office A. Supriyadi said. "If people's responses are good we will possibly increase the supply."

He said that only the prices of middle and high quality rice had gone up in Malang, "not the price of IR rice."