Trade Minister conducts checks on rice prices

The Jakarta Post ,  Jakarta   |  Wed, 12/13/2006 1:45 PM  |  Business

Andi Haswidi, The Jakarta Post, Jakarta

The trade minister paid an impromptu visit Tuesday to Senen Market, Central Jakarta, where she found that many prices of essential foodstuffs had increased more than expected.

Pictured above (right), Trade Minister Mari Elka Pangestu talks to a vegetable vendor in the market and listens to complaints. She is flanked by Director General for Domestic Trade Ardiansyah Parman, (second right).

""We are on the lookout for unexplained price increases, and will continue to monitor overall prices,"" Mari explained.

From what the retailers told her, the average price of rice in the market had risen by far more than the expected 5 percent. The price of low-quality rice has increased from Rp 4,500 per kilogram to Rp 5,200 this week, and medium-quality rice from Rp 5,500 to Rp 6,000. Meanwhile, best quality rice has increased from Rp 6,000 to Rp, 7,000.

The increase in rice prices has been accompanied by increases in the prices of other goods in the market, such as eggs, which have gone up from Rp 8,000 to Rp 8,500 per kilogram, sugar from Rp 6,000 to Rp, 6,500, chili from Rp 8,000 to Rp 15,000 and cooking oil from Rp 113,000 per 17-kilogram can to Rp 175,000.

Denying rumors that hoarding by traders was the cause of the hike in rice prices, Mari said that the real reason was a supply shortage due to the delayed onset of this year's rainy season.

""One of the vendors told me that only one of her rice suppliers was holding onto his stocks. So, we can't really say that the price increases are due to hoarding,"" Mari said.

""What's important is that we have to continue our monitoring and anticipate the aftermath of the prolonged dry season.""

On Monday, the government announced it would release rice from the national buffer stock to help stabilize supplies in seven provinces -- Papua, West Irian Jaya, Bengkulu, East Kalimantan, the Riau Islands, West Sumatra and North Maluku.

""We are now distributing 50,000 tons of rice to the seven provinces, and will release more to other provinces that request additional supplies in the near future,"" Mari said.

Mari also said that the government would continue to provide subsidized rice to the poor at Rp 1,000 per kilogram.

""The government has allocated ten-months' supply of rice for the poor. This month, 200,000 tons of such rice are available for nationwide distribution.

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