Rice production will fall short of target

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)