Wed, 29 Dec 2004

RI extends rice import ban until June

The government extended a ban on rice imports until June next year, as good harvests earlier this year have boosted rice stocks to a level sufficient to meet national demand, said a senior official on Tuesday.

"Based on a recommendation from the Ministry of Agriculture, the rice stock is still sufficient until June 2005, so we don't need to import rice," Minister of Trade Mari E. Pangestu told reporters.

Indonesia's unhusked rice output is estimated at 54.34 million tons this year, which can yield about 33.37 million tons of edible rice. Domestic consumption for husked rice has been estimated at 31 million tons.

Therefore, she said, if there is not an overly rapid growth in domestic consumption, the current rice supply should be enough to meet national demand.

This means that Indonesia has this year become self-sufficient for the first time since the 1980s.

In past years, the country imported about 1.8 million tons to 2 million tons of rice per year.

Previously, the government imposed rice import bans between January and July this year to protect domestic farmers before extending it for another six months until December, thanks to robust harvests between February and May.

For next year, the government set a target of unhusked rice output to stand at 54.25 million tons next year. --JP