Bulog plans to export 1m tons of rice this year

The Jakarta Post ,  Jakarta   |  Wed, 02/25/2009 10:37 AM  |  National

The state logistics agency, Bulog, is planning to export 1 million metric tons of medium type rice to the Philippines, Malaysia and East Timor in the third quarter of this year, the agency chief said Wednesday.

Bulog president director Mustafa Abubakar, however, added that the plan would only be carried out if the government could reach its production target of 40 million metric tons of rice by August this year.

"The National Statistics Agency predicts that the government will have reached its target of 40 million metric tons of rice in the third quarter," Mustafa said as quoted by tempointeraktif.com.

In catering for national demand, Mustafa said, a total rice production of 40 million metric tons would leave between 3 and 4 metric tons in surplus, meaning that the government could export 1 million metric tons of medium type rice (currently valued at US$400 per metric ton).

Mustafa, however, said Bulog would make sure there was enough rice to satisfy national demand before exporting.

"This is the election year. We will only export if it is really safe [to do so]," he said.

Bulog was established in 1967 to stabilize rice prices, and to ensure monthly rice supplies for civil servants and military officers. In the 1980's Bulog's responsibilities were extended to cover other basic commodities including sugar, wheat, corn and soybean, but in the late 1990s this was cut back again to rice alone. (dre)

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