REPUBLIKA.CO.ID, JAKARTA -- National Food Agency (Bapanas) head Arief Prasetyo Adi said that the potential absorption of rice in April is estimated at 4.9 million tons, so the production could contribute significantly to domestic rice availability.
“This month (potential) rice harvest is 4.9 million tons of rice equivalent, which yesterday last month (February) from 3.5 million tons increased 3.8 million tons (in March),” Arief said during halalbihalal with media crews in Jakarta, Thursday (18/4/2024).
He delivered the figure on the basis of the Sample Area Framework (KSA) data from the Central Statistical Agency (BPS). Further rice harvest in May is also estimated at 3 million tonnes of rice equivalent. This figure is down from predictions in April.
“This month it's harvesting 4.9 million tons next month (May) about 3 million tons. It was time for all of us to absorb. Well now all on back we are ready to absorb, including Bulog,” Arief said.
Arief explained that the absorption of rice by farmers nationwide in March increased by 300,000 tons from the previous month. From 3.5 million tons to 3.8 million tons. Even so, he estimated that the amount of harvest in March should be more than 3.8 million tons, if the area of Demak Regency was not affected by flooding.
He explained that as a result of a flood that hit the area of Demak Regency in Central Java in early March 2024, resulted in rice harvest reduced by as much as 200 thousand tons as part of the rice fields in the area were flooded, some even flooded.
“Now it's the harvest again, last month 3.8 million tons out of 3.5 million tons. So instead it went up 300 thousand tons. Then minus the flood of Demak and others it is about 17,000 hectares, that is equivalent to 200 thousand tons,” Arief said.
Bapanas noted the current stock of rice in Bulog warehouses nationwide stood at 1,231,434 tons as of April 16, 2024. The stockpile is still less than President Joko Widodo wants, where Bulog stocks are at least 3 million tonnes.
“If Mr. President wants Bulog to have at least 3 million tons of rice stock, if the assignment from the Food Agency (to Bulog) is 2 million tons, why 2 million tons? Since 1.2 million tons of it is used for SPHP (rice stabilization of supply and food prices), then we also have food aid (10 kg of rice) for 22 KPM January to June 2024,” Arief said again.
Meanwhile, regarding rice imports, Arief said the move was done in a measured way and would not affect dry grain prices at the farmer level.
“The importation was done by Bulog, if it still goes, it goes into the warehouse (Bulog) and is stored. So it has nothing to do with prices at the farmer level. If prices at the farmer level are falling today because of the harvest immediately, then it is wet and dryer capacity,” Arief said.
Bapanas imposed flexibility for Perum Bulog for the government purchase price (HPP) of dry harvested grain (GKP) at the farmer level, to Rp 6,000 per kilogram (kg) from the previous Rp 5,000 per kg imposed from April 3, 2024 to June 30, 2024.
“We decided that there is HPP flexibility for Bulog. This is so that Bulog can increase CBP stocks (government rice reserves) that come from domestic production, so it is not only sourced from imports alone,” Arief said.
He explained the flexibility of grain and rice HPP applied for Perum Bulog, i.e. dry grain harvest (GKP) at the farmer level which was previously Rp 5,000 per kilogram (kg) was flexibly converted to Rp 6,000 per kg. Furthermore, milled dry grain (GKG) in Perum Bulog warehouse, which was previously Rp 6,300 per kg, has flexibility to Rp 7,400 per kg.
While HPP rice in Perum Bulog warehouse with minimum sosoh degree of 95 percent, moisture content of 14 percent, broken grain maximum of 20 percent, and groats of maximum 2 percent which was previously Rp 9,950 per kg was flexibly adjusted to Rp 11,000 per kg.
“Of course, with price flexibility for Bulog, this will be a safety net for local farmers, so that prices can be maintained well. When production increases, it will certainly affect prices,” Arief said.
Arief said that it was in accordance with the direction of President Joko Widodo to always remind that during the harvest of rice, prices at the farmer level should not fall too deeply, so the present government made sure together with Perum Bulog who had been tasked to absorb domestic production as CBP stock.
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