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Indonesia market actions to check high rice prices
21.07.2010 11:22 "Agro Perspectiva" (Kyiv) —
In its attempt to contain skyrocketing rice prices in the country, Indonesia on Tuesday started conducting market operations in regions where it has risen significantly.
State-owned logistics company Bulog Sutarto Alimoeso will lead combing operations which begins in Manokwari (Papua), Bengkulu, Sumatra, where the price of rice has risen 10 percent.
Bulog also preparing market operations in other regions where the price of rice had shown a tendency to increase significantly.
Price of rice in Java had risen by around 4.4 percent and outside Java by around 2.8 percent. But the hikes in several cities outside Java however had already reached close to 10 percent, analysts said.
The price of rice in Manokwari and Bengkulu had increased 10 percent, in Banjarmasin (South Kalimantan) eight percent, Pontianak (West Kalimantan) nine percent and Bandar Lampung (Sumatra) almost eight percent.
Indonesian government would sell rice at a price that was Rp400 to Rp500 lower than the market price in an effort to stabilize the price of the commodity.
In a statement issued here country’s food ministry said, «If the price drops we will continue to lower it until the hike will be no more than 10 percent. If possible it will drop until the level before namely Rp5,000 per kilogram at hullers or Rp5,060 per kilogram. Right now it is higher than that or almost Rp5,200 per kilogram at hullers».
Bulog has a stock of rice of 59,000 tons for the operations. «That is a lot. For the operations early last year it only needed 15,000 tons,» he said.
Operations last year were carried out in East Nusa Tenggara, Bali, Yogyakarta and Jakarta.
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