RI to maintain rice duty

RI to maintain rice duty

JAKARTA (Reuters): Indonesia said on Thursday it would keep its 30 percent import duty on rice until at least next year.

"We won't increase or lower the duty, at least until next year," Minister of Agriculture Bungaran Saragih told reporters.

"The import duty matters are still being studied by the government." He did not give any further details.

Farmers have been urging the government to raise the duty to help curb imports.

The ministry's Rice Policy Study Agency said on Wednesday the government would next week issue a new rice policy, including higher official farmgate prices, to protect farmers.

Traders have said rice imports could reach two million tons this year, down from 2.5 million in 2000 and 3.6 million in 1999.

Bungaran said output was expected to rise 2.5 percent to 32.67 million tons of milled rice next year due to the government's efforts to intensify rice planting and the distribution of seed, fertilizer and pesticide.

He said the country hoped to raise yields to six tennis a hectare from 4.5 tons.