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Bulog to procure 3.2 million tons of rice next year

The State Logistics Agency (Bulog) plans to procure as much rice next year as this year’s target of 3

The Jakarta Post
Wed, December 29, 2010 Published on Dec. 29, 2010 Published on 2010-12-29T11:40:32+07:00

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Bulog to procure 3.2 million tons of rice next year

T

he State Logistics Agency (Bulog) plans to procure as much rice next year as this year’s target of 3.2 million tons.

Bulog rice procurement in 2011 would mainly depend on domestic production, the agency’s president director Sutarto Alimoeso said Tuesday, adding that if there was a deficit in production, Bulog would import rice to cover the shortfall.

This year, Indonesia has imported a total of 1.08 million tons of rice, comprising 800,000 tons from Vietnam and 280,000 from Thailand. Out of the total imported, 516,000 tons have been delivered to Bulog, while the remaining 564,000 tons are pending delivery.

“We hope that all remaining rice from the import contracts will arrive by February next year.

“In June, we will evaluate whether we need to import more or not,” Sutarto said.

Agriculture Ministry data show that the country produced 34 million tons of rice last year and this year’s production is estimated to increase to 38 million tons, while total nationwide demand for rice is expected to reach 33 million tons. However, the government needs to import rice because the country cannot guarantee sufficient rice stocks.

According to Sutarto, the agency will be able to meet the procurement target if no floods occur in January and February next year. “Floods would certainly affect our rice production,” he said.

Sutarto explained that flooding in areas around the Bengawan Solo River in Central and East Java would heavily impact on the country’s rice production.

He pointed out that the 2007 floods damaged 100,000 hectares of rice fields in the area and caused crop failure.

Sutarto said that according to his Bulog counterparts in several Asian countries, such as Thailand, Vietnam and Pakistan, rice production in the countries should remain stable despite any floods.

Bulog said that this year’s procurement had reached 3.01 million tons or 95 percent of the target. About 1.93 million tons were procured from local farmers and other 1.08 million tons were imported. The procurement boosted the agency’s total rice stocks to 4.63 million tons. After distribution throughout this year, Bulog’s remaining rice stock totals 1.38 million tons. (lnd)

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