Rice imports won't affect farmers: Official

Rice imports won't affect farmers: Official

JAKARTA (JP): The government's rice imports are expected to have a direct impact on the commodity's retail prices, but not affect the incomes of farmers to the same extent.

Minister of Agriculture Sjarifudin Baharsjah said yesterday that the imports will help keep prices stable, especially during the current fasting month and upcoming Idul Fitri holidays.

He said the inflow of rice imports was also one of the reasons the government decided to increase the commodity's floor price earlier this week, and so protect farmers' incomes.

"To prevent the imports from disturbing the international market, there are certain ways to do it... It's not like buying goods at the store next door," he said during a hearing with members of the House of Representatives' commission for agriculture and forestry.

Sjarifudin said the inflow of rice imports depended largely on transportation, port facilities and other factors which are managed on the exporters' side.

"So it is understandable if schedules for rice imports are unpredictable, like the current situation," he said.

News reports stated recently that tons of rice imported by the National Logistics Agency (Bulog) have been held up for the last few weeks at Jakarta's Tanjung Priok port.

Bulog chairman Beddu Amang said recently that Indonesia's rice imports during the first half (April-September) of the current fiscal year reached US$239.7 million in value, the highest level for more than a decade.

He said that last year, Bulog's rice procurement from farmers was only 918,925 tons, the lowest since 1984.

Indonesia was formerly the biggest rice importer in the world but became self-sufficient in 1984. Rice exports exceeded imports until 1993, but the country has had to rely partly on imports since 1994.

In 1994, rice production fell to 46.6 million tons -- the lowest level in 15 years -- from 48.2 million tons in 1993. The decline was caused by unfavorable weather and plant diseases.

Legislators said yesterday that the rice imports may affect the incomes of farmers.

Mrs. Bambang Sigit, a legislator from the Golkar faction, said the imports may adversely affect the farmers' income, especially because the imports occurred almost simultaneously with the start of the harvesting season.

Sjarifudin said this was one of the reasons the government decided to announce the new floor prices of unhusked rice on Wednesday.

The new floor price, Rp 450 (19 U.S. cents) per kilogram, is Rp 50 higher than the previous price of Rp 400 per kg. The increase is the highest since the government applied the floor price system since 1969.

Sjarifudin explained that the floor price was a guarantee that the farmers will get at least Rp 450 per kg. (pwn)