Agriculture

Dealing with Rice Surplus

VIVAnews - Rice has been a hot commodity. Current progress on the issue shows that the primary Indonesian staple is made use of by political parties to gain votes in the 2009 Elections.

Former Head of Farmers Union of Indonesia, Siswono Yudohusodo, stated his pride over Indonesia, which has managed to be self sufficient in rice this year. "Certainly, it is a credit [to farmers] after [the country] imports rice several times," he said on Friday, Feb. 13.

Yudohusodo estimated that there will be a rice surplus of around 2.5 million tons this year if domestic rice supply reaches 38 million tons with a consumption rate of around 35.5 million. "What will be done with the rice surplus?" he said.

Yudohusodo provided three alternatives for the new government to take into consideration. First, the government may export the rice surplus. "In fact, international price is now lower than domestic price. Will [rice] then be granted subsidy?" said Yudohusodo.

Second, not exporting the surplus. Third, allocating it for improving rice powder production aiming at wheat flour whose raw material is still being imported.

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Presiden PKS Tifatul Sembiring.

(Chairperson of Justice and Prosperous Party (PKS) Tifatul Sembiring)

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In response to the question, Chairperson of Justice and Prosperous Party (PKS) Tifatul Sembiring agreed that the rice surplus should be processed into rice powder. "One of our economic concepts includes turning raw material into value-added intermediate goods," he said.

However, Yudohusodo reminded that the new government should not raise the price of rice. In addition, the increasing production is due to the sharp rise in the price of rice. "The rice price increases from US$165 per ton to US$800 per ton. People would certainly cultivate rice fields," he said.

Translated by: Bonardo Maulana Wahono

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29 Maret 2024