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)