Since the end of last year, this daily has warned about anomalies in rice prices. In the middle of last year, the farmgate price of unhusked rice continued to rise.
By
Kompas Editor
·3 minutes read
Since the end of last year, this daily has warned about anomalies in rice prices. In the middle of last year, the farmgate price of unhusked rice continued to rise.
In the market, however, the price of unhusked rice has dropped. This issue has been partly resolved. The noncash food assistance for vulnerable groups is said to be one of the reasons why rice prices tended to fall. However, this does not completely explain the whole situation, because farmgate rice prices and market prices are usually positively correlated. When the price in the market goes down, the farmgate price will go down, and vice versa.
A satisfactory answer to this issue had not been found when, at the end of last year, we had another anomaly in the rice market. Based on data compiled by the Association of Indonesian Farmers and Seed Banks in 46 rice-producing regencies, the price of dry unhusked rice (GKP) well during the period of October to December 2020 to Rp 4,263 per kilogram. In the past, the price of unhusked rice would tend to increase in that period, because yields and the number of harvests were relatively small.
We are increasingly convinced that the anomaly reflects a serious problem. To ascertain the cause of this anomaly, it seems that the old approach of relying solely on production and consumption figures will misguide policy decisions. Detailed studies are needed to open up this problem clearly.
The existing production figures still require in-depth observation related to farmers\' behavior in planting, their readiness to process, their ability to save and the role of traders in controlling prices.
First, we must ensure data reliability. For a long time, data on food production and consumption was plagued with problems. In addition, micro issues in the field should be explored. The existing production figures still require in-depth observation related to farmers\' behavior in planting, their readiness to process, their ability to save and the role of traders in controlling prices. Research on this matter will make it easier for the government to ascertain the details of the problem of food production in the field.
On the consumption side, we need a study of changes in people\'s food consumption, choice of food sources, people\'s access to food, as well as dependence on rice alternatives, especially wheat. Wheat needs to be highlighted, because the import of this commodity is very large at around 11.3 million tons, or one fifth of rice production.
Changes in the farmer\'s environment will be clearly observed in the midst of declining interest in becoming a farmer and narrowing land.
All micro studies will provide a clear picture of the big problem related to food, which is increasingly complicated. Changes in the farmer\'s environment will be clearly observed in the midst of declining interest in becoming a farmer and narrowing land. Changes in consumer behavior will also be observed when many regions have seen rapid urbanization, which changes people’s lifestyles and consumption patterns.
We do not want the food problem to drag on. We also don\'t want this problem to create a food crisis. The classic solutions seem unable to resolve the matter. A breakthrough in looking at the food problem is needed. It is very possible that the younger generation is now the changemaker of the food situation, even though not many have been involved.