Production drop forces Bulog to import rice
Production drop forces Bulog to import rice
JAKARTA (JP): A decrease in the country's rice production
forced the National Logistic Agency (Bulog) to import 900,000
tons of husked rice this year and another 380,000 tons is
expected next month, State Minister of Food Ibrahim Hasan said
yesterday.
He told a press conference here that out of the this year's
imports, 600,000 tons were procured for the repayment of
Indonesia's loans to other countries and the other 300,000 tons
were under purchase agreements.
"The imports are necessary to prevent rice prices from
soaring on the domestic market due to the decline in production,"
said Ibrahim, who is also chairman of Bulog.
Floods earlier this year, and a severe dry season
afterwards, have slashed Indonesia's production of unhusked rice
by 3.6 percent to 30.16 million tons this year.
Ibrahim said that Bulog's market operations have kept rice
price developments under control thus far. During the last two
years, for example, the average price of rice increased by only
16.8 percent -- far lower than the inflation rate of about 19
percent during the same period.
He said the rice imports are expected to increase Bulog's
stock, which currently are estimated at about 550,000 to 600,000
tons.
The low level of stocks was caused by decreasing procurement
conducted by Bulog, he said.
Decline
"Bulog's annual rice procurement steadily declined from 2.56
million tons in 1992 to 1.96 million tons last year and to
950,000 tons this year," he said.
The minister said that Bulog will likely procure about 1.6
million to 1.9 million tons of rice this year. "However, the
figure may change, depending on several natural conditions," he
added.
He said the government will continue its market operation in
the coming few months because prices may have a tendency to rise
before the harvest season beginning in March.
"We have thus far sold 800,000 tons of rice for this year's
market operations," he explained.
Ibrahim said Indonesia's rice production is expected to
increase again next year and rice prices, therefore, will be more
stable than last year.
Minister of Agriculture Sjarifudin Baharsjah said last week
that the country's production of unhusked rice would likely rise
by more than eight percent to 50.15 million tons next year.
Ibrahim also said that in addition to rice, Bulog will
import crude palm oil (CPO) and corn to help stabilize prices on
the domestic market, particularly before and during the Idul
Fitri holiday in March.
"I have asked for approval from the Minister of Agriculture
on the imports of 150,000 tons of CPO from Malaysia in the coming
two months," he said.
The price of CPO increased from Rp 1,030 per kilogram in
January to Rp 1,230 per kilogram this month, he said. (icn)