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Jakarta Post

Market operation launched to curb soaring rice prices

The West Java administration has been releasing the bulk of rice from storage warehouses in an effort to curb the soaring prices due to crop-destroying extreme weather

Yuli Tri Suwarni (The Jakarta Post)
Bandung
Fri, January 20, 2012 Published on Jan. 20, 2012 Published on 2012-01-20T09:55:09+07:00

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T

he West Java administration has been releasing the bulk of rice from storage warehouses in an effort to curb the soaring prices due to crop-destroying extreme weather.

According to a Bank Indonesia report, the price of normal rice has increased to Rp 8,500 (95US cents) per kilogram from Rp 6,700–Rp 7,000 last October.

The West Java Logistics Agency (Bulog), which is responsible for stock-piling commodities to ensure provision for future needs, reported that delays during the planting session from October to December last year had contributed to the soaring price.

Harvests have subsequently been affected and will not come until March this year.

The agency head Usep Karyana said that his office had distributed 850 tons of rice in the first weeks of January in several regencies and municipalities, including Bandung, Bogor, Sukabumi, Ciamis and Tasikmalaya.

The figure almost equaled the total amount released during 2011 at 1,160 tons.

“We are racing against the soaring prices of rice. We must continue the market operation. We are facing a lean season in which supply is dropping. The prices are understandably going up,” Usep said on the sidelines of a high level meeting on inflation in Bandung on Thursday.

While ensuring that existing stocks should suffice for the next three months now that Bulog has 120,000 tons in storage, Usep said that another 10,000 tons would be released soon.

The local government has allocated Rp 10 billion to support the market operation in 26 municipalities/regencies. Ferry Sofwan Arif, head of the West Java Industry and Trade Agency, said that the government was also looking to channel for-poor rice packages beginning this Friday. The packages are intended for the 2.8 million poor people in the province.

“We hope the market operation will make West Java the first province to channel for-poor rice packages to control prices in the market,” he said.

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