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Bulog says rice prices might rise until February
Agency cites the effect of low harvests at the end of last year among factors contributing to the price rise.
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Sufficient stock: Porters carry bags of rice at a warehouse run by the State Logistics Agency (Bulog) in Kelapa Gading, Jakarta, in this undated photograph. (JP/Wendra Ajistyatama)
T
he State Logistics Agency (Bulog) has said that rice prices might continue climbing until February, continuing a trend that started at the end of last year because of low harvests from November to December and forecasts of natural disasters in early 2022.
Bulog president director Budi Waseso said on Monday that the agency was also expecting rice production to take place from February to March, which would provide up to 4.14 million tons of rice for the agency to absorb, helping stabilize rice supplies and prices.
“[This] is an ideal amount to meet the need to maintain a rice stock of 1 to 1.5 million tons,” Budi told House of Representatives Commission IV, which oversees agriculture, forestry, fisheries and food production, during a working meeting on Monday.
The House meeting comes as Statistics Indonesia (BPS) reported that milled rice prices had increased 1.08 percent month-to-month in December 2021, the third consecutive monthly increase since October 2021, due to supply-side problems.
Indonesia always pays serious attention to the adequacy of rice stocks and stability of rice prices, which have a big influence on inflation.
Bulog assured that Indonesia’s current rice stock was enough to meet market demand in the first quarter of this year. Total rice stocks reached roughly 1 million tons by the end of 2021, comprised of 987,157 tons of government rice reserves (CBP) and 5,614 tons of commercial rice reserves.
“[Rice stocks] will be enough to stabilize rice supply and prices in early 2022,” said Budi.
