Indonesia. Government to maintain rice price above Rp 3,700 per kg

21.02.2017

The government will maintain the price of rice above Rp 3,700 (28 US cents) per kilogram by buying the commodity directly from farmers.

Declining prices have been seen in some regencies in Central Java and East Java such as Blora, Bojonegoro, Ngawi and Pati, Agriculture Minister Amran Sulaiman said on Monday.

Price drops, mainly caused by increased production, were feared to have discouraged farmers from cultivating their fields. Recent prices have varied from Rp 3,100 to Rp 3,500 per kg.

According to Central Statistics Agency (BPS) data, in January the average price of rice was still at Rp 5,400 per kilogram.

"Our team is already in the field along with the State Logistics Agency to monitor prices. […] The day after tomorrow we will hold a meeting, and then the market operation will begin," Amran said at the State Palace on Monday.

(Read also: Government has no plan to import rice this year)

Indonesia’s annual rice production increased by 9 million tons to 79.14 million tons in 2016 because a long wet season enabled farmers to plant more than usual.

The 2017 rice production target is 75 million tons.


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