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13184
Mon, 07/21/2008 - 09:10
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News Focus: RI EXPECTED TO ENJOY RICE SURPLUS OF 2.7 MILLION TONS IN 2008
By Eliswan AzlyJakarta, July 20 (ANTARA) - Indonesia has come out of the global food crisis as marked with its success in becoming self-sufficient in rice, and this world largest archipelagic country is predicted to enjoy a dry unhusked rice surplus of 2.7 million tons this year.
Director General of Food Crops Sutarto Alimoeso said early this week the optimism to enjoy a surplus of 2.7 million tons was based on the Central Bureau of Statistics (BPS)'s forecast that the country's rice output in 2008 would increase by 4.76 percent from last year's.
"We hope the increase will exceed the forecast so that we will enjoy a surplus of two million tons and do not need to import the staple this year," he said.
The BPS has projected the country's dry unhusked rice production this year to reach 59.88 million tons, up by 2.72 million tons from 2007 due to an increase in the land of the harvest by 237,610 hectares and an increase in productivity of the paddy fields by 130 kg/hectare.
Last year, Indonesia's dry unhusked rice output rose by 4.98 percent or 2.70 million tons from 2006, enabling the country to enjoy a surplus of 1.5 million tons, he said.
In 2006, the country enjoyed a dry unhusked rice surplus of 50,000 tons, he added.
Sutarto said he would ask the National Land Agency (BPN) to allow rice growers to use idle land.
"We have millions of hectares of idle land. However, our farmers cannot make use of it," he said.
Although Indonesia has become self-sufficient in rice and is having a rice overproduction in 2008, this country still had no plan to export the staple in large volumes this year.
Agriculture Minister Anto Apriyanto said earlier Indonesia had no intention to export its rice in large quantities, although some countries had asked Indonesia to export the staple.
In fact, the rice surpluse will be handed to the National Logistics Agency for storage to meet year-end's needs.
The demand for example came directly from Deputy Prime Minister of Malaysia Dato Sri Mohd Najib Tun Abdul Razak during his visit to Indonesia after learning of this country'ss rice surplus. He even said his country was ready to buy the staple from Indonesia with a view to solving its food shortages.
"If Indonesia records a surplus in rice production, Malaysia will buy it," Najib said in an interview with Antara at the Halim Perdanakusuma airbase last month.
Najib said his country planned to import 500,000 tons of rice in 2008 and therefore Malaysia had prepared US$224.18 for that purpose, and provides a subsidy to stabilize the price of the staple in that country.
With regard to other countries' orders for rice from Indonesia, the trade ministry said Indonesia would allow rice exports only if its stock at the National Logistics Board (Bulog) has reached at least 3 million tons.
However, Minister Anton added, the government of Indonesia will not ban rice exports, but merely limit the volume and type of the rice for export.
The ministry had issued a regulation that only Bulog is authorized to export rice. The board can also import the staple if its stock has declined from 1 million tons.
It said other exporters are only allowed to export sticky rice after obtaining an approval from the foreign trade director general at the trade ministry.
The ministry said the regulation is needed to stabilize rice prices in the domestic market and protect the interest of the public, as rice is a staple food in Indonesia, a country with a population of over 230 million.
As a result of the increase in rice prices on the global market, Indonesia's rice exports have become more competitive, but the ministry said that it does not mean the government will hastily decide to allow the export of the commodity.
Meanwhile Trade Minister Mari Elka Pangestu said the government was drafting a regulation on the export of a number of foodstuffs which are in a surplus, including rice. Under the regulation, rice of a certain quality could be exported while the government is committed to securing stocks and stabilizing prices in the domestic market.
The price of rice in the world market has reached US$500-US$700 per ton, or Rp5,000-Rp7,000 per kg, while at home the price is stable at Rp4,750-Rp6,000 per kg.
It is feared that the high prices in the world market will push up the price of rice in the domestic market although the government intends to keep it at Rp4,750 to Rp6,000 per kg.
"The government is committed to keeping the price of the staple at Rp4,750 to Rp6,000 per kg so that it will not burden the people," Pangestu said.
"The price of rice in the world market is relatively high but as long as the price at home is maintained at a stable level and stock is still adquate, the situation will remain secure," Mari added.
The increase in foodstuff prices happened because of increased demands in the world market while supply was limited. Moreover, rice exporting countries like Vietnam had imposed a tax on rice exports to secure their own need for the staple.
Director General of Food Crops Sutarto Alimoeso said early this week the optimism to enjoy a surplus of 2.7 million tons was based on the Central Bureau of Statistics (BPS)'s forecast that the country's rice output in 2008 would increase by 4.76 percent from last year's.
"We hope the increase will exceed the forecast so that we will enjoy a surplus of two million tons and do not need to import the staple this year," he said.
The BPS has projected the country's dry unhusked rice production this year to reach 59.88 million tons, up by 2.72 million tons from 2007 due to an increase in the land of the harvest by 237,610 hectares and an increase in productivity of the paddy fields by 130 kg/hectare.
Last year, Indonesia's dry unhusked rice output rose by 4.98 percent or 2.70 million tons from 2006, enabling the country to enjoy a surplus of 1.5 million tons, he said.
In 2006, the country enjoyed a dry unhusked rice surplus of 50,000 tons, he added.
Sutarto said he would ask the National Land Agency (BPN) to allow rice growers to use idle land.
"We have millions of hectares of idle land. However, our farmers cannot make use of it," he said.
Although Indonesia has become self-sufficient in rice and is having a rice overproduction in 2008, this country still had no plan to export the staple in large volumes this year.
Agriculture Minister Anto Apriyanto said earlier Indonesia had no intention to export its rice in large quantities, although some countries had asked Indonesia to export the staple.
In fact, the rice surpluse will be handed to the National Logistics Agency for storage to meet year-end's needs.
The demand for example came directly from Deputy Prime Minister of Malaysia Dato Sri Mohd Najib Tun Abdul Razak during his visit to Indonesia after learning of this country'ss rice surplus. He even said his country was ready to buy the staple from Indonesia with a view to solving its food shortages.
"If Indonesia records a surplus in rice production, Malaysia will buy it," Najib said in an interview with Antara at the Halim Perdanakusuma airbase last month.
Najib said his country planned to import 500,000 tons of rice in 2008 and therefore Malaysia had prepared US$224.18 for that purpose, and provides a subsidy to stabilize the price of the staple in that country.
With regard to other countries' orders for rice from Indonesia, the trade ministry said Indonesia would allow rice exports only if its stock at the National Logistics Board (Bulog) has reached at least 3 million tons.
However, Minister Anton added, the government of Indonesia will not ban rice exports, but merely limit the volume and type of the rice for export.
The ministry had issued a regulation that only Bulog is authorized to export rice. The board can also import the staple if its stock has declined from 1 million tons.
It said other exporters are only allowed to export sticky rice after obtaining an approval from the foreign trade director general at the trade ministry.
The ministry said the regulation is needed to stabilize rice prices in the domestic market and protect the interest of the public, as rice is a staple food in Indonesia, a country with a population of over 230 million.
As a result of the increase in rice prices on the global market, Indonesia's rice exports have become more competitive, but the ministry said that it does not mean the government will hastily decide to allow the export of the commodity.
Meanwhile Trade Minister Mari Elka Pangestu said the government was drafting a regulation on the export of a number of foodstuffs which are in a surplus, including rice. Under the regulation, rice of a certain quality could be exported while the government is committed to securing stocks and stabilizing prices in the domestic market.
The price of rice in the world market has reached US$500-US$700 per ton, or Rp5,000-Rp7,000 per kg, while at home the price is stable at Rp4,750-Rp6,000 per kg.
It is feared that the high prices in the world market will push up the price of rice in the domestic market although the government intends to keep it at Rp4,750 to Rp6,000 per kg.
"The government is committed to keeping the price of the staple at Rp4,750 to Rp6,000 per kg so that it will not burden the people," Pangestu said.
"The price of rice in the world market is relatively high but as long as the price at home is maintained at a stable level and stock is still adquate, the situation will remain secure," Mari added.
The increase in foodstuff prices happened because of increased demands in the world market while supply was limited. Moreover, rice exporting countries like Vietnam had imposed a tax on rice exports to secure their own need for the staple.
