Aulia Mutiara Hatia Putri, CNBC Indonesia
Saturday, 12/08/2023 13:35 WIB
Photo: The atmosphere of rice loading and unloading activities at the Cipinang Rice Main Market, East Jakarta, Tuesday (8/8/2023). (CNBC Indonesia/Faisal Rahman)
Jakarta, CNBC Indonesia – Again, food issues related to the stomachs of the majority of people in Asia were hit by scary news after India banned large exports on July 20 as an effort to control high food prices, coupled with El Nino, which caused prices to be at their highest level in 12 years.
The El Nino condition which is expected to come in August to September will exacerbate existing concerns. It is predicted that the price will continue to rise in the future in line with weak production and rice-producing countries wanting to secure supply within their own countries.
The Food and Agriculture Organization’s Rice Price Index for July rose 2.8% to 129.7 points. This figure rose 19.7% compared to last year, and the highest nominal value since September 2011, data from FAO showed the sharpest price increases came from Thailand.
Import Plans Sticking Out Again
Perum Bulog accelerates the realization of imports of rice to anticipate the risk of the El Nino phenomenon. Where, for this year, Bulog received an assignment quota of 2 million tons of rice imports.
In addition to accelerating the realization of imports, Bulog is also spurring the procurement of rice from domestic production. According to CNBC records, until August 10, 2023, the realization of domestic absorption of grain/rice has reached 780 thousand tons.
The import step was indeed carried out with the aim of having an impact in maintaining the stability of rice prices and addressing the impact of El Nino.
The Minister of Trade (Mendag) Zulkifli Hasan revealed that he would reopen rice import options to anticipate extreme drought or El Nino. Although he still cannot confirm whether Indonesia will import rice again or not, Zulhas said that his party will continue to issue import permits if they are needed.
For your information, this year the Ministry of Trade has issued rice import permits for the 2023 period, with the procurement of 2 million tons, and the permit was issued in March 2023 to maintain national food security until the end of 2023.
For the record, the National Food Agency (Bapanas) is targeting government food reserve stocks (CPP) to reach a minimum of 5% of the total monthly national needs. CPP is needed so that the government can intervene if there is a price fluctuation of staple foods in the country.
However, until June 2023, CPP stocks for several types of commodities were still below the target, even reaching 0% of national needs.
But it seems that until now the government is like still installing the mode wait and see while ensuring safe stocks until rice prices are under control. However, just as a reminder that conditions like this will be a terrible scourge for the stomachs of the Indonesian people if the government is not responsive, the price of rice will soar. Inflation will soar again.
CNBC INDONESIA RESEARCH
research@cnbcindonesia.com
Watch the video below:
Not Only El Nino, This Is The Problem Facing Indonesian Farmers
(aum/aum)
2023-08-12 06:35:00
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