Trade Minister: Food aid will be adjusted to surplus commodities
Jakarta (ANTARA) - Trade Minister Budi Santoso said that in the future, food aid does not have to always be in the form of rice and cooking oil, but can use other commodities that need support for absorption, such as eggs.
According to Budi, this scheme aims to maintain the balance of supply and prices at the farmer and breeder level when there is excess production which has the potential to suppress prices.
“So, for example, when the price of eggs is falling, then food aid does not have to be cooking oil or rice, but can also be eggs. So this is in order to absorb our food products or our staple food products, which are indeed in increased production,” said Budi in Jakarta, Thursday.
He explained that the policy is being prepared in line with the decline in egg prices in several areas, especially in Blitar, East Java. The government has coordinated with the National Nutrition Agency (BGN) so that the Nutrition Fulfillment Service Units (SPPG) in the area absorb the production of local farmers’ eggs.
This step is taken to help raise egg prices so that they return to being close to the highest retail price (HET) while also maintaining the welfare of farmers.
Currently, national egg production has a surplus of around 12 percent. According to him, the market demand is actually available, but it needs better absorption management through government programs.
“Currently, there is a 12 percent surplus for eggs, so this is good for farmers. And the absorption actually exists, it just needs us to manage it well for the SPPG, so that eggs can be absorbed well,” said Budi.
In addition to eggs, the government will also apply a similar approach to other food commodities. If the price of chicken meat falls below the HET, the BGN will be encouraged to increase absorption through the Free Nutritious Meal program run by the SPPG.
According to him, the flexibility of food aid is one of the government’s instruments to maintain price stability while also ensuring that the production of farmers and breeders is well absorbed in the domestic market.