Central Java allocates Rp 50b to stabilize falling rice price

The Jakarta Post ,  Jakarta   |  Thu, 03/12/2009 3:15 PM  |  National

The Central Java administration has allocated Rp 50 billion (US$4.15 million) to stabilize the price of un-husked rice, which fell during the March-April harvest period .

The funds will be allocated in the province's 2009 budget and will be distributed as advance financing for the main rice producing regencies and municipalities.

Gayatri Indah Cahyani, head of the province's food security body, told tempointeraktif.com that regents and mayors could use the money to buy rice from farmers, to be sold later.

She said that, as part of the scheme, the regencies and municipalities have to return the money distributed to them after selling the rice.

The price of unhulled paddy dropped to between Rp 1,800 and 2,200, significantly lower than the government purchase price of Rp 2,400 per kilogram. (dre)
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