Bulog, a state-owned public company that operates in the food logistics sector, is optimistic that rice prices will be under control ahead of Ramadan which starts in the second week of March. The Main Director of Bulog on Thursday (29/2) said that the harvest increased supply.
The price of rice, a staple food for most of Indonesia's 270 million people, has jumped more than 16 percent since last year as the El Nino weather phenomenon reduces rainfall in much of Asia in 2023, reducing production and triggering food inflation pressures in some countries that are the most price sensitive consumers in the world.
Rice harvest has begun in several areas and supplies are starting to flow to several major rice markets in the country, said Bulog Main Director Bayu Krisnamurthi. Apart from the big harvest, Bulog has also received a commitment to import 1.2 million metric tons of rice, he added.
“I approached colleagues in Thailand, Vietnam, Myanmar, Cambodia, India, we made a commitment, even though we didn't buy it straight away, we already have a commitment for the next few months,” he said.
Earlier this month, Indonesia increased its rice import quota by 1.6 million tons, from the previous allocation of 2 million tons, although permits for the new quota are still being processed. (ab/ka)