Indonesia Turns to International Market for Solving Rice Crisis


Published on: March 16, 2024.

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Indonesian Authorities Look Overseas to Alleviate Rice Shortage

Indonesian authorities are taking measures to combat a nationwide shortage of rice amid soaring prices and growing concerns for millions of impoverished households. The delay in the harvest season, caused by the El Nino weather phenomenon, has pushed it back from January to April. Furthermore, severe droughts experienced last year have resulted in a decrease in domestically produced rice available in the market.

To address this issue, the government plans to import a significant amount of rice, potentially reaching up to 3.6 million tons. Countries such as Thailand, Cambodia, and Pakistan have been identified as potential sources. Already, 500,000 tons have arrived in the country.

Compounding the problem is the Muslim holy month of Ramadan, where rice consumption typically increases. As a result, prices have reached unprecedented levels and are causing distress among consumers. One rice seller in Jakarta exclaimed, “I’ve been selling rice for decades, and this is the first time the price has reached 15,000 Rupiah per liter.”

The impact of the shortage extends beyond the rising prices. Food vendors have noted that their customers are complaining about receiving smaller portions due to the limited availability of rice.

In response to these challenges, authorities have implemented several measures. They have set a price cap to control the soaring prices and ensure affordability for consumers. Additionally, to assist the most vulnerable, the government is providing 10 kilograms of rice per month through June 2024 to 22 million impoverished families.

To meet the demand for rice and alleviate the shortage, it is essential for Indonesia to look beyond its borders and engage in international trade. Importing rice will help stabilize prices and ensure an adequate supply for the population.

For more information on rice exporters, visit [Has Rice](https://www.hasrice.com) and [Pakistan Rice](https://www.pakistanrice.com).

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