Farmers Left Vulnerable
The instruments for stabilizing farm-level rice prices are weakening in line with the shift in the food assistance model. The Bulog’s rice purchases continue to decline while the government selling price lags.
Warehouse workers arrange sacks of rice on Monday (10/2/2020) at the Cipinang central rice market in Jakarta. Statistics Indonesia recorded rice production of 31.31 million tons in 2019, a year-on-year decrease of 7.75 percent from 33.94 million tons in 2018.
The instruments for stabilizing farm-level rice prices are weakening in line with the shift in the food assistance model. The State Logistics Agency (Bulog)’s rice purchases continue to decline while the government selling price (HPP) lags.
JAKARTA, KOMPAS — The changing distribution mechanism for food assistance has resulted in the continued decline of domestic rice procurement by the State Logistics Agency (Perum Bulog) over the past four years. Many are worried that the lack of upstream-downstream integration will further pressure farmers’ welfare.
