USAID to provide RI with food assistance

USAID to provide RI with food assistance

WASHINGTON (Reuters): Corn and rice are at the top of the list of commodities that the U.S. Agency for International Development is considering for donation to Indonesia, an agency spokeswoman said Wednesday.

The $25-million package could also include a wheat/soya blend, the spokeswoman said.

USAID officials hope to decide on the exact mix of commodities by the end of the week. USAID is making the donation under title II of the PL480 food assistance program. Shipment will be in the first half of the year.

Meanwhile, the U.S. Agriculture Department has offered Jakarta another $25 million in long-term, low interest loans under title I of the PL480 program for purchases of rice, soybeans and wheat. However, USDA has not yet signed a title I sales agreement with Indonesia.

Indonesia's currency problems and banking crisis have been accompanied by its worst drought in 50 years.

USDA currently forecasts Indonesia's 1997/98 corn crop at 5.7 million tons, down from the 1996/97 crop of 6.0 million which was also reduced by drought.

Indonesia has consumed, on average, about 7.0 million tons of corn annually in recent years. However, USDA expects that to fall to 6.15 million in 1997/98.

USDA also forecasts Indonesia's rice production to fall 4 percent in 1997/98 to 30.9 million tons, milled basis.

A further decline is also possible if the annual monsoon season ends as normal around April, USDA said.

The main 1997/98 rice crop, which accounts for 50 percent of annual production, was planted late and will be harvested late because of below normal rainfall last fall, USDA said.

That means the second rice crop, which accounts for 30 percent of annual production, won't be planted until May or June - after the monsoon normally ends, USDA said.

A third rice crop planted each year accounts for 20 percent of Indonesia's rice output.

Based on current production estimates, USDA forecasts Indonesia to import a record 3.7 million tons of rice in 1998, compared to just 800,000 in 1997.