Global Rice News

Rice Imports to Strengthen Government’s Rice Reserve Stocks: Bapanas

Jakarta – The National Food Agency (Bapanas) Head, Arief Prasetyo Adi, has emphasized the government’s decision to import rice to strengthen the Government’s Rice Reserve (CBP) stocks. According to Adi, this decision is necessary due to the decline in Indonesia’s rice production caused by the El Nino phenomenon. The import of rice will help maintain a minimum secured CBP stock at the State Logistics Agency (Bulog) of one million tons.

In 2024, Bulog has been assigned to import two million tons of rice to meet the demands of the CBP stocks. This import is crucial as Indonesia is estimated to face a rice deficit in the January-February 2024 period, with a total deficit of 2.83 million tons. These numbers indicate that Indonesia needs to take necessary measures to avoid an escalation in rice prices.

The decline in rice production and the potential increase in rice prices can have adverse effects on the farmers, producers, and consumers. However, Adi assures that rice imports will not significantly impact the prices of rice at the farmers’ level. He believes that if the Ministry of Agriculture can increase rice production to above 2.5 million tons per month, the prices will start to decline.

One positive indicator of the impact of rice imports on prices is the Food Crop Farmer Exchange Rate (NTPP) index. Throughout 2023, this index has shown positive changes, with a significant increase recorded in December 2023 compared to the previous year. These positive changes indicate that the prices of rice are being maintained at favorable levels for farmers.

In conclusion, the import of rice is a necessary step to strengthen the Government’s Rice Reserve stocks and mitigate potential increases in rice prices. Bapanas is committed to ensuring that balance is maintained in the pricing of rice across all levels, from farmers to consumers.

Source: ANTARA News