We have heard opinions and inputs from all representatives. We have gathered their proposed price.
Jakarta (ANTARA) - The National Food Agency (NFA) invited all stakeholders in the national rice business to provide inputs on revising the government's purchasing price (HPP) for unhusked rice ahead of the peak harvest season in March.

"We have heard opinions and inputs from all representatives. We have gathered their proposed price," NFA Head Arief Prasetyo Adi said in a statement received here on Friday.

According to Adi, a crucial meeting was held with representatives from ministries, government institutions, associations, farmers’ organizations, and business actors for setting the purchase price.

The meeting sought to determine the HPP that would become a benchmark for absorbing farmers' unhusked rice.

The meeting was a form of the government's commitment to involving all stakeholders in the industry to set a fair purchase price for unhusked rice, he said.

"Later, we will analyze each option, especially the impact when we apply option A, B, and so on. How is the impact on the inflation, farmer's welfare, and public purchasing power," he elaborated.

During the meeting, each representative proposed the purchase price for unhusked rice based on the calculation of the farming cost structure (SOUT).

The Indonesian Association of Seed Bank and Farming Technology (AB2TI) proposed that the price be set at Rp5,700 per kilogram while the Indonesian Farmers Association (HKTI) proposed a price of Rp5,550 per kg.

Then, the Indonesian Farmers Union (SPI) proposed a price of Rp5,600 per kg; the National Outstanding Farmers and Fishermen Association (KTNA) Rp5,400 per kg, and the Indonesian Farmers Alliance (API) Rp5,800 per kg.

While the Agriculture Ministry proposed an HPP in the range of Rp4,800–Rp5,100 per kg, the National Research and Innovation Agency (BRIN) sought a price of Rp4,850–5,000 per kg.

Adi said that all the proposals will be analyzed further.

Before setting the price, the government will thoroughly consider the point of view of farmers, rice mill owners, consumers, and also the impact on inflation control, he added.

That would be impossible if the government only focuses on one aspect or group, he said.

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Translator: Kuntum K Riswan, Sri Haryati
Editor: Rahmad Nasution
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