Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman revealed that the National Logistics Agency (Bulog) had rented more warehouses to store rice stocks currently reaching 2.4 million tons in its warehouse.

"I heard that Bulog has rented warehouses," Minister Sulaiman remarked after a discussion here on Tuesday.

The minister explained that the stockpiling in Bulog's warehouse indicated that rice production was going well, with the agency's daily absorption of the commodity reaching 10 thousand tons.

Earlier, Managing Director of Bulog Budi Waseso revealed that the company had limited warehouses, with a maximum capacity of only 2.7 million tons.

Currently, the rice stock stored in Bulog's warehouse reaches 2.4 million tons comprising 2.2 million tons of government rice reserves and 143 thousand tons of commercial rice. Bulog is also required to rotate the distribution, considering that the government has commissioned the stock of government rice reserves to reach 2.5 million tons by the end of the year.

With the volume of the commodity almost touching peak capacity, Bulog is also still absorbing the rice. During this harvest, the daily rice absorption averaged eight thousand tons. Moreover, Bulog has set the rice absorption target to reach 1.8 million tons by the end of the year.

"If it is fulfilled, only 2.7 million tons will be filled in. It has been stockpiled without damage. There is no more 'space' to absorb. If we absorb it, a warehouse must be rented," Waseso explained.

Bulog is looking at another option to maximize the absorption of rice and avoid the quality of the commodity from degrading by releasing one million tons of the government rice reserves, from the current 2.2 million tons.

The government's rice reserves will be released in accordance with Regulation of the Minister of Agriculture Number 38 of 2018 concerning the Management of Government Rice Reserves.

The regulation stipulates that the government rice reserves are released if they exceed the storage period of at least four months and/or have the potential to decline in quality. Related news: BNI supports Bulog-UNS collaboration to strengthen food security

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Translator: Mentari Dwi Gayati/Bambang Pur
Editor: Fardah Assegaf
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