Indonesian Political, Business & Finance News

RI gearing up for record rice imports

| Source: REUTERS

RI gearing up for record rice imports

CANBERRA (Reuters): Widespread rice crop failure in Indonesia
because of El Nino-induced drought would stretch the country's
distribution system to handle record imports, an Australian
academic said on Friday.

This year, Indonesia was committed to import the greatest
amount of rice in any single year since independence, Jim Fox of
the Australian National University's (ANU) Research School of
Pacific and Asian Studies told an ANU conference on El Nino.

Fox has just returned from Indonesia where he conducted a
study for the World Bank on the effects of the El Nino-induced
drought on crop production.

Fox would not disclose his assesment of how far Indonesia's
rice production will fall but said a report would be made public
soon.

But he left no doubt that the crop will be savaged by the
drought. "Ports will be flooded with rice," he said.

The question existed of whether the ports could handle all of
the rice which would be coming into Indonesia, he said.

But the main problem would be distribution, he said.

The big question was how much of the total harvest of rice
would be lost and how much might be regained in a catch-up with
subsequent plantings, he said.

Production would show a steep drop all over Java from the next
crop and the second crop this year would produce some of the rice
which should have come out of the first crop, he said.

He also said east Indonesia, especially the Nusa Tenggara
chain of islands, would produce virtually no corn this year in
coastal regions while the crop in higher areas would be down by
about 30-40 percent, he said.

He said this left areas of Indonesia worse off than Papua New
Guinea, where rains since December held out the hope of
ameliorating a desperate situation caused by crop devastation.

The situation in Indonesia's eastern islands could only get
worse, Fox said.

Both Fox and speakers on drought in Papua New Guinea described
the 1997/98 El Nino as either the worst or the second worst this
century -- but probably the worst.

Chris Ballard, also of the ANU Research School, said that in
the Indonesian province of Irian Jaya heavy rain since December
had begun to restore food supplies to previously badly hit areas,
but other areas may still take months to recover.

Malaria had spread to many areas of the region because of the
drought, he said.

View JSON | Print