Indonesia. Government continues to buy paddy grain from farmers to stabilize prices


Agriculture Minister Amran Sulaiman has said the government will intensify its efforts to help farmers by preventing further falls to paddy grain prices due to excess supply in many regions.

“We will continue [to buy stock from farmers] for the next six months, up to August,” Amran said during a meeting with officials from the State Logistics Agency (Bulog) and the Indonesian Military at the ministry’s office in Jakarta.

He said the price of paddy grain (unhusked rice) was now below Rp 3,700 per kilogram — the selling price limit for farmers.

The program of purchasing stock from farmers is called the Farmer’s Paddy Absorbance Program (Sergap). In the program, Bulog buys paddy grain from farmers to stabilize prices.

Bulog president director Djarot Kusumayakti said the agency had prepared paddy grain warehouses that could accommodate some 3.9 million tons of the commodity.

Djarot said the government was also preparing a presidential regulation on the price of paddy grains based on their water content.“I hope the regulation will be signed [by the President] tonight,” he said on Thursday.

He said the program would be strictly supervised.


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