The State Logistics Agency (Bulog) says it is ready to supply medium-quality rice to markets through market operations to keep prices in check ahead of and during the fasting month and Idul Fitri.

Bulog head Sutarto Alimoeso said on Friday that its buffer stock of around 321,000 tons of medium-quality rice would be sufficient to meet the demand that usually picked up during the season every year.

'€œIn the worst conditions I'€™ve experienced, the demand was 200,000 tons at maximum. So, I am quite sure the [buffer] stock is sufficient,'€ he said, adding that Bulog had spent around 42,000 tons in buffer stock to date.

He also said Bulog would start market operations when rice prices increased by 10 percent within a week.

Sutarto was part of a government entourage, including Coordinating Economic Minister Chairul Tanjung, Trade Minister Muhammad Lutfi, Agriculture Minister Suswono and State-Owned Enterprises Minister Dahlan Iskan, visiting the Cipinang Wholesale Market, which supplies Greater Jakarta, in East Jakarta and a Bulog Jakarta warehouse in North Jakarta.

Bulog intervenes in the market by selling key food commodities, like rice, sugar and beef, which it procures from domestic and foreign suppliers to help stabilize prices by selling the commodities below the market price.

Bulog now has total supplies of 1.9 million tons of rice at 600 warehouses in Indonesia, according to Sutarto.

According to a seller at Cipinang Market, the current price of medium quality rice IR-64 III at the market was Rp 7,600 (64 US cents) per kilogram (kg), around Rp 200 higher than the normal price of Rp 7,400 per kg, because of the lack of supply.

The price of premium quality rice, however, was stable, thanks to its sufficient stock, said the seller.

Chairul said the government would take the necessary actions to help stabilize rice prices that kept fluctuating every day.

'€œTraders at the market asked for additional supplies of medium quality rice because they had enough premium rice stock,'€ Chairul said at a press conference at the Trade Ministry.

'€œI'€™ve asked Bulog to supply [the market] within the next one to two days.'€

Chairul said rice stocks at Cipinang Market now stood at 20,000 tons, which were enough to cover seven to 10 days of transactions.

Meanwhile, Bulog'€™s Jakarta warehouse, he said, had around 76,000 tons of rice and it was enough to support Cipinang Market ahead of and during Ramadhan. (ask)

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