Indonesian Political, Business & Finance News

Rice Paddy Prices in Aceh Drop Amid Peak Harvest, Suspected Market Manipulation

| | Source: MEDIA_INDONESIA Translated from Indonesian | Agriculture
Rice Paddy Prices in Aceh Drop Amid Peak Harvest, Suspected Market Manipulation
Image: MEDIA_INDONESIA

Farmers in Aceh province are entering the peak harvest of the main planting season (rendengan season). After this harvest concludes, they hope to proceed to the second planting season (gadu) expected in mid-April to May 2026.

The current peak harvest areas in Aceh include Pidie Regency, Pidie Jaya Regency, Aceh Besar Regency, Aceh Tamiang Regency, and Aceh Selatan Regency. Ironically, amidst this normally joyous condition, they are haunted by continuously falling paddy prices.

According to Media Indonesia’s investigation on Tuesday and Wednesday (8/4) in Pidie Regency, for example, the price of dried harvested paddy ranges from Rp7,000-Rp7,100/kg. This price is cheaper than at the start of the harvest about two weeks ago, which reached Rp7,400/kg.

It is not yet clear why such an extraordinary price drop has occurred in less than a month. Whether due to decreased rice absorption or the actions of middlemen and market manipulation.

“At the start of the paddy season at the end of Ramadan three weeks ago, the paddy price reached Rp7,400/kg; now it has dropped drastically to Rp7,000/kg. This drop in such a short time is very distressing for farmers,” said Muhammad Nasir, a community figure of farmers in Peukan Baro Subdistrict, Pidie Regency.

The price drop process has occurred several times since the start of Eid al-Fitr 1447 H. For instance, five days before Eid, the price of dried harvested paddy was at Rp7,300/kg.

Then, at the beginning of Eid al-Fitr 1447 H or three days after Eid 2026 AD, it dropped to Rp7,200/kg. In the second week after Eid, it fell again to Rp7,100/kg, and now it is stuck at Rp7,000/kg.

Therefore, farmers in Indonesia’s westernmost province are increasingly anxious. There are fears that the price of dried paddy from this rendengan season will drop further as the peak harvest emerges in North Aceh and East Aceh.

Ridwan, a farmer in Indrajaya Subdistrict, said that paddy price drops every peak harvest season are common in Aceh. Collectors or middlemen usually switch tactics with two excuses.

Namely, claiming it is peak harvest time so paddy stock is abundant. The other reason is that there is no money for purchases.

“With such threats or intimidation, farmers are forced to sell even at lower prices than before. How could the paddy price be greatly affected just by the harvest season in Aceh? Meanwhile, rice from Aceh is supplied to markets outside the region like North Sumatra and other provinces,” said Ridwan.

The government faces a policy dilemma with no truly comfortable option.

Amran has directed Bulog to prepare for the upcoming 2026 peak harvest.

The Regent of Lamongan, Yuhronur Efendi, stated that the Lamongan Regency Government will continue to encourage paddy purchases in accordance with government regulations.

Babinsa will be tasked with escorting the harvest in the area, including securing the paddy absorption price of Rp6,500 per kg.

The government has decided to temporarily halt the distribution of rice food assistance to 16 million underprivileged people during the ongoing peak harvest season.

Paddy prices in Pidie, Aceh, are far below the government purchase price (HPP) of Rp6,500 per kg, which will take effect from 15 January 2025.

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