Rejection of Rice Imports Intensifies

Other than farmers, a number of regional leaders, civil society organizations and academics have also decried the central government’s plan to import 1 million tons of rice.

KOMPAS/AGUS SUSANTO

Some farmers pulled piles of rice that were harvested earlier in Karangligar Village, Telukjambe Barat District, Karawang, West Java, Tuesday (9/2/2021).

JAKARTA, KOMPAS – The government’s contentious plan to import 1 million tons of rice continues to unravel. Following rejection from individual farmers, farmer groups and farmer associations, now several regional leaders have also expressed their opposition to the plan. The central government is urged to prioritize absorbing local rice production as well as the needs of domestic farmers, who have continued to be negatively affected as the selling price of paddy grains declines.

The price of paddy grains in several areas such as South Sumatra, East Java and Central Java has fallen below the government’s reference price (HPP), which stands at Rp 4,200 per kilogram of harvested dry grains (GKP). Other than the increase of supplies as harvest areas expand, the drop in grain prices is also caused by the decreasing quality of grains due to pests and heavy rain.

The East Java Agriculture Department recorded that up to April 2021, harvested areas in the region will span over 974,189 hectares (ha), with an estimated rice production of 3,053,004 tons. With such a large production, East Java’s rice surplus will reach 902,410 tons by May 2021. In June, there will be an additional harvest from 295,118 ha of paddy fields, with an estimated production of 1 million tons of rice. Thus, in total, East Java’s rice surplus in the first half of 2021 will amount to 1.91 million tons.

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“With such a large surplus, East Java would not need to import rice. Our supplies are abundant. Even our food task force is traveling around to absorb farmers’ paddy grains during this harvest season,” said East Java Governor Khofifah Indar Parawansa on Monday (22/3/2021).

According to Khofifah, this year’s surplus is similar to last year’s condition, in which East Java had a rice surplus of 1.9 million tons. Having a large stock of rice also helped maintain the price stability of the commodity among consumers. There was no considerable fluctuation of price in the market.

With such a large surplus, East Java would not need to import rice.

Previously, West Java Governor Ridwan Kamil proposed a postponement of the central government’s rice import plan. It is feared that importing rice would further decrease the price of local rice and, thus, jeopardize the welfare of domestic farmers.

KOMPAS/ANGGER PUTRANTO

Head of Bulog Ketapang II Warehouse Ashadi shows a pile of 2,200 tons of remaining imported rice sacks in 2018 which are still stored in Bulog Ketapang II Warehouse, Banyuwangi, Monday (22/3/2021).

Similarly, South Sumatra argued that the province did not yet need to import rice since the province had a rice surplus of 2.07 million tons. The South Sumatra administration’s focus is currently on improving the plummeted price of paddy grains. Such a priority has been directly conveyed by South Sumatra Governor Herman Deru to Agriculture Minister Syahrul Yasin Limpo.

On Monday (22/3), Deputy South Sumatra Governor Mawardi Yahya said the price of paddy grains had decreased to Rp 3,500 per kg, making the central government’s rice import plan a great irony. Another major consideration is the fact that South Sumatra currently aims to develop a food estate and achieve food self-sufficiency.

Also read: Farmers’ Anxiety over Low Unhusked Rice Prices

Opposition to the rice import plan also comes from the Nahdlatul Ulama central board (PBNU). “Please prioritize the fate of domestic farmers, who serve as the backbone of the country’s economy. Supporting the [rice import] plan would only destroy their welfare,” said PBNU chairman Said Aqil Siroj as cited from the organization’s official website nu.or.id.

On a separate occasion, head of Nahdlatul Ulama’s East Java Agricultural Development Center (LPPNU), Gufron Ahmad Yani, said the central government’s rice import plan would pose great difficulties to local farmers who had fought hard to continue their productions amid the Covid-19 pandemic. “There is nothing better that the government could do than cancelling its rice import plan,” said Gufron.

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Moreover, the PBNU urged the government to reevaluate its salt import policy. Eman Suryaman, the PBNU’s chief for economic affairs, said the reevaluation was needed as salt imports would halt domestic salt production. Around 80 percent of salt farmers, who are also members of Nahdlatul Ulama, have reportedly asked the PBNU to raise awareness of the issue.

KOMPAS/RENY SRI AYU

Farmers in Simbuang District, Maros, South Sulawesi harvest rice, Friday (19/3/2021). The main harvest that takes place at the end of March to early April is expected to reduce production and fall prices.

Not yet needed

Previously, during a meeting with the Trade Ministry on Thursday (4/3), Coordinating Economic Affairs Minister Airlangga Hartarto said the central government was aiming to import 500,000 tons of rice to ensure the government’s rice reserve (CBP) and another 500,000 tons to meet the State Logistics Agency’s (Bulog) need. The government is scrutinizing the importance of guaranteeing the availability of food commodities, one of which is rice, by having a supply of 1-1.5 million tons.

The plan has brought numerous problems as data on domestic rice production show that there is currently a rice surplus. Statistics Indonesia (BPS), for instance, projected that domestic rice production between January and April 2021 would reach 14.54 million tons, a 26.84 percent increase compared to the production rate in the same period last year, which stood at 11.46 million tons. On average, the production rate in 2019 and 2020 amounted to 31.3 million tons, higher than the level of demand, which stood at approximately 29 million tons.

Also read: Food Problems Getting More Complicated

During a webinar titled “Reformulating Rice Policies” held by Alinea Forum on Monday (22/3), Professor Mada Masyhuri of Gadjah Mada University’s School of Agriculture said the government should not find the need to import rice at the current time. With the improved calculation method, namely the area sampling frame, data released by the BPS indicates a surplus of domestic rice production.

Furthermore, the production rate is at its highest as harvest season nears. Thus, Masyhuri added, the current situation should be an opportunity for Bulog to absorb domestic farmers’ paddy grain production to prevent a decline of its price.

I want domestic paddy grains to be absorbed first. If the grains’ quality and quantity are good, the import plan should not take place

Previously, Trade Minister Muhammad Lutfi asserted that the central government guaranteed rice imports would not be carried out during harvest season. The option of importing rice will provide an alternative to secure the government’s rice reserve in Bulog. The import option will also consider the amount of Bulog’s rice supplies at the beginning of this year, the projection of domestic production and the price of rice. “If the harvest is good, Bulog will fill its rice stocks with domestic production. Yet, the figure must be clear: Bulog must have a stock of 1-1.5 million tons,” said Lutfhi (Kompas, 20/3/2021).

Agriculture Minister Syahrul Yasin Limpo has called for prioritizing the calculation and absorption of domestic farmers’ paddy grain production before the rice import plan is carried out. He asserted his readiness to debate any ministers if domestic rice production proved sufficient.

“I want domestic paddy grains to be absorbed first. If the grains’ quality and quantity are good, the import plan should not take place,” said Syahru when giving a lecture in Medan Agricultural Development Polytechnic, Deli Serdang regency, North Sumatra, on Monday (22/3). (GER/RAM/ NIK /XTI/LKT/ MKN/NSA)

This article was translated by Astria Z. Nabila