Rice production said to exceed target this year
Rice production said to exceed target this year
JAKARTA (JP): Minister of Agriculture Soleh Solahuddin
estimated on Tuesday that Indonesia's unhusked rice production
this planting year would be 48.35 million metric tons, 4.5
percent higher than the government's initial target.
Soleh attributed the better-than-expected predicted harvest to
the government's enhanced efforts to extend rice planting areas
and increased productivity.
"I guarantee that we will have a good harvest in February.
After that, we can flood the market with our rice," Soleh told a
media conference.
The 48.35 million tons of unhusked rice could be processed
into 29 million tons of milled rice. Indonesia's consumption of
rice is expected to reach 30 million tons this year.
Soleh said that the country has about nine million tons of
surplus stocks in the market at present, including that kept by
farmers and rice millers and households.
"If added to the approximately two million tons held by the
State Logistics Agency (Bulog), the rice stocks in the country
reach a total of 11 million tons," he said.
The minister said that the 11 million tons of rice would be
sufficient to meet domestic demand for five months. "But it does
not mean that our stocks will run out after five months, because
we will enjoy a big harvest in January and February," he said.
Soleh added that many people, farmers and traders, were still
holding on to their stocks, hoping for better prices.
"Many well-off families bought rice, doubled or even tripled
their monthly consumption last month due to rumors of a rice
shortage in the country," he said, adding that such a practice
had partly caused the sharp increase in the market rice price.
Domestic
The government plans to flood markets with the surplus stock
in the hope of controlling the prices, he said. It also plans to
reinforce domestic production by purchasing rice at market prices
rather than basic prices.
Harvest failure earlier this year has prompted the government
to import 4.1 million tons of rice. Contracts have been signed
for 2.4 million tons of rice, of which 1.5 million tons have been
delivered. The next batch of 400,000 tons is expected to arrive
next month, while the other 500,000 tons will be shipped in
November.
Of the remainder, 1.2 million tons will be procured through
international bidding while the rest is expected to come through
grants and loans.
Soleh also assured that there would be an adequate supply of
foodstuffs for the upcoming Christmas, New Year and Idul Fitri
festivities which all fall within a three-week period.
"We have anticipated the increasing demand during the three
holidays, despite the decline in people's purchasing power," he
said.
Soleh said that the government would import 30,000 live cows
from Australia to meet the domestic demand during the holiday
season.
He said the live cow import, which would cost about Rp 93.6
billion at the exchange rate of Rp 6000 per U.S. dollar, would be
carried out by private companies.
"The Australian government has pledged to subsidize the
exchange rate to make it Rp 6,000 per U.S dollar for the import.
Private companies under the Association of Indonesian Meat
Producers and Feedlots will import the animals at the subsidized
exchange rate," he said.
The U.S. dollar is now trading between Rp 10,500 and Rp
11,500.
Soleh said that the import was needed because local production
could not meet domestic demand.
He estimated that the country would need 59,028 tons of fresh
beef, 1,250 tons of frozen meat, 80,650 tons of chicken meat and
71,383 tons of eggs during the festivities. (gis)