Govt to Distribute Rice

KOMPAS/PRIYOMBODO

A resident buys a sack of rice at Matahari shop in a Kebayoran market in Kebayoran Lama, South Jakarta, Sunday (26/8/2018). The price of rice at the retail level increased by Rp 500 per (3 US cents) kg. The dry season led to a decrease in the supply of rice from the regions.

JAKARTA, KOMPAS – The government has decided to start distributing its rice stock, as the consumer-level price of medium-grade rice has been on an increasing trend. However, there are concerns that the move will harm farmers, especially as many are in the middle of the harvest season.

The decision to intervene in the rice market was made during a coordination meeting on Monday (27/8/2018) at the Office of the Coordinating Economics Minister in Jakarta. Coordinating Economics Minister Darmin Nasution, Trade Minister Enggartiasto Lukita, National Logistics Agency (Bulog) procurement director Bachtiar and Food Security Agency head Agung Hendriadi of the Agriculture Ministry attended the meeting.

Data from the Information Center for Strategic Food Prices (PIHPS) shows that the price of medium-grade rice is hovering between Rp 11,650 (79 US cents) and Rp 11,800 per kilogram. “We have observed that the price of rice in several regions is rising,” said Darmin.

Enggartiasto said that the market intervention would prevent inflation from rising above 3.5 percent. Bulog will stop distributing its rice stock if the price of medium-grade rice fell within the ceiling price (HET) of Rp 9,450 per kg in Java.

The government said that it had sufficient rice stock, with Bachtiar saying that this year’s rice procurement was 2.47 million tons, comprising 1 million tons imported rice and around 1.4 million tons local rice.

However, farmers are worried that the government intervention would put pressure on the farm-level price of rice. Indonesian Farmers and Fishermen Association (Intani) chair Guntur Subagja said that he hoped the government would be selective in distributing rice, and not distribute in rice surplus regions.

Drought

The ongoing drought in many rice production centers is believed to have contributed to the rising price of rice. For instance, mills in Magelang city and Temanggung regency in Central Java were experiencing a shortage of unhusked rice, as local paddy fields were used to cultivate other, more resilient crops. In Ngimbrang of Temanggung regency’s Bulu district, the price of dry harvested rice (GKP) had increased from Rp 4,800 per kg to Rp 5,100 per kg in the last two weeks.

Drought is also threatening several rice centers where harvesting has not started. In South Sulawesi, for instance, Jeneponto, Bantaeng, Takalar and parts of Bone are among the regions experiencing drought.

The rice fields hit by drought are expanding in Central Java due to the unmet target of building 1,000 artificial lakes, and around 1.7 million people in 1,163 villages may be hit by a clean water crisis. Raw water irrigation head Ketut Arsa Indra Watara of the Central Java public works, water resources and spatial planning agency said that the artificial lake target could not be met because of a lack of land and not a lack of funds.

Meanwhile, the West Java administration has declared a drought emergency from August to October, with 1.1 million people in the province affected by drought, which has also damaged several watershed areas.

(JUD/WHO/REN/ODY/EGI/RTG/HEN/CAS)