Maintaining Prices of Unhusked Rice

Kompas/Adi Sucipto

Farmers harvest their rice in Bakalanpule, Tikung district, Lamongan regency, East Java, on Thursday (8/2). The price of unhusked rice at the farmers’ level has reached Rp 4,800 (35 US cents) per kilogram, down from Rp 5,200 per kg in January.

The price of unhusked rice, which is still fluctuating, still needs special attention even though the harvest season has begun.

The government has tried to prevent hoarders from taking advantage of the situation. However, prices remain stable, which means that the attention should now be directed to supply and distribution.

According to the Agriculture Ministry, the harvest season begins in February and will reach its peak in March. Although the harvest will occur during the rainy season, Agriculture Minister Amran Sulaiman believes there would be no problems in processing the unhusked rice.

Rice remains the main staple food for most Indonesians. The price increases at the end of last year and earlier this year contributed significantly to monthly inflation.

Every time the harvest begins, the same problem arises, namely concerns that unhusked rice produced by farmers cannot be absorbed by the market due to an abundant supply, and the increase in poor quality unhusked rice as the harvest coincides with the peak of the rainy season. As a result, the price of the unhusked rice falls, and farmers suffer losses.

The government also decided to import rice because the stock held by the National Logistics Agency (Bulog) had declined to 900,000 tons in January. At the same time, it had to carry out a market operation to push prices down. Bulog has repeatedly said that imported rice, which would arrive in Indonesia from mid-February to early March, would not enter the market.

The task to overcome Indonesia’s rice price issue should be carried out from the production phase down to the distribution phase to consumers, including poor people, who receive rice aid from the government.

When the bumper rice harvest begins, the same problem will rise again and again every year. It is therefore important for us to sort out the problem at the national, provincial and district levels.

Similarly, there should be a strategy and policy on rice production, as part of the national food policy, in finding long-term, medium-term and short-term solutions in the forms of programs or projects.

Currently, the harvest has not yet begun, as seen in the limited supply of rice and fluctuating prices. There are problems that should be addressed at the local level. However, there are also problems that occur almost in every place.

We hope farmers will receive a good price for their rice during the bumper harvest. To get a good price, the quality of rice should also be good. As the short-term solution, the harvest should be carried out on time and unhusked rice should be properly dried to avoid too much shrinkage when milled.

Therefore, the appropriate technology is needed to raise the quality of the rice without incurring costs that may burden the farmers.

At the same time, Bulog through its regional divisions, should be able to fulfill its duty of buying rice from farmers on time to prevent prices from falling. There is no harm in enhancing cooperation with private rice mills, including those belonging to farmers or farmer groups, as it will simultaneously promote entrepreneurship in villages and improve the rural economy.