Rice production will fall short of target

JAKARTA (JP): State Minister of Food and Horticulture A.M. Saefuddin said on Thursday that he feared the country's unhusked rice production would not meet the set target of 52 million metric tons this year because of a longer than expected rainy season.

Saefuddin estimated this year's unhusked rice production would reach only 48 million tons, equivalent to 29 million tons of milled rice.

"The initial target was 52 million metric tons of unhusked rice or 31 million tons of milled rice. But heavy rains caused by the La Nia weather phenomenon and the scarcity of fertilizers could cut the output of unhusked rice to only 48 million tons or 29 million tons of milled rice," he said during a hearing with the House of Representatives Commission III for agriculture, forestry, transmigration and food affairs.

With a production level of 48 million tons of unhusked rice, Indonesia would need to import about 2.5 million tons of rice during the next fiscal year, which will begin in April, he added.

Rice consumption for the country's population of more than 200 million is expected to reach 33 million tons next year.

The drop in the domestic production of rice last year forced the State Logistics Agency (Bulog) to import 4.6 million tons of rice during the 1998/1999 fiscal year, a 780 percent increase over the 523,776 tons it imported during the 1997/1998 fiscal year.

Saefuddin also said that heavy rain and a lack of fertilizers during the planting season resulted in low-quality rice.

Farmers had to sell the low-quality rice below the floor price of Rp 1,500 per kilogram set by the government in December, he said.

Saefuddin also said the government, through Bulog, would procure one million tons of unhusked rice produced by local farmers at the floor price in order to stabilize the price of rice in the domestic market.

"The government has allocated Rp 1.5 trillion (US$176.47 million) of Bank Indonesia's liquidity credits to buy one million tons of unhusked rice from local farmers in order to stabilize prices," he said.

"But the amount will not be enough to help farmers because 20 million tons of unhusked rice will be produced during the current harvest which will last until May. The low procurement is due to the government's lack of money," he said.

Bulog's domestic rice procurement fell by 683 percent to 249,000 tons last year, the lowest level in 25 years, because of a decline in rice production. In 1997, the agency procured 1.95 million tons of rice from local farmers.

Rice bought and distributed by Bulog makes up only part of the domestic supply. The agency also imports rice to supplement shortages in the domestic rice supply.

Saefuddin said that the government was also discussing aid commitments with the Italian government and members of the European Union to provide food for the poor.

He said that Australia's Victoria state had agreed to donate 260 tons of food for babies and pregnant women.

The donation will be distributed to the needy beginning on March 1. (gis)