Rice Production for Domestic Demand
Friday, 28 March, 2008 | 15:54 WIB

TEMPO Interactive, Jakarta: The government has not yet issued a regulation to monitor rice exporting. They are focusing on fulfilling the national demand for rice. Trade Minister Mari Elka Pangestu said the government's plan to monitor rice exporting is still being discussed. “We are evaluating and discussing possible options,” he said Thursday (27/3).


According to Mari, departments are discussing options to control export. The most important, she said, is domestic supply.


Mari questions whether the high price of rice in the world market is because of a price trend or just occasional. She said the government has anticipated the possibility of the rice supply for the export market.

Farming economist, Fadhil Hassan, said the government does not need to react to the export plan due to the international high price of rice. According to him, the government should assure the rice supply for an entire year not just for one occasion. “Do not be too optimistic before having accurate data about rice production and consumption,” he said.


Fadhil said, there was a word or two for exporting rice in 2004. “But the data could not be verified,” he said. Rice exporting, he said, is a potential problem.

He explained the increase of the international rice price at this time is temporary. It is because some of the rice producers such as China, Vietnam, and India, are having disturbances with their production.

Research from Strategic and International Studies (CSIS), Pande Radja Silalahi, said rice exporting will not directly improve the life of poor farmers who have fields less than two hectares. “If the government wants to help farmers, they should ask the State Logistics Agency (Bulog) to buy more rice from farmers and prioritize fertilizer distribution,” he said.

Pande reminded the government not to issue policies like for cooking oil. “It is important for the government to secure a rice supply ,” he said. Rice exporting, he said, only benefits traders and not farmers.

Last week, the international rice price increased to US$ 618.5 – 745 per ton for Philippine rice, and US$ 530 – 550 per ton for Thailand rice without shipping cost.


RR ARIYANI | AMIRULLAH | ALI NY