Jakarta (ANTARA) - The Indonesian Trade Ministry has issued a permit for the import of 1.6 million tons of rice to secure the Government's Rice Reserve (CBP).

Director General of Domestic Trade at the ministry, Isy Karim, said that the import approval would augment the rice imports of two million tons determined previously by the government.

"The ministry has issued import approvals for Bulog assignments. The first is with two million tons of rice for this year, and now for the additional 1.6 million tons. The import approval has also been issued," he informed during the Coordination Meeting for Securing Food Supply and Prices Ahead of Ramadan and Eid al-Fitr in Jakarta on Monday.

Based on a report from state logistics agency Bulog, the realization of rice imports has reached 500 thousand tons so far.

Karim said that the additional rice imports are necessary to maintain the availability of food supplies ahead of the National Religious Holidays (HBKN).

Based on a survey conducted by the ministry, demand is expected to surge by up to 45.13 percent during Ramadan and Eid al-Fitr.

So far, there has been a dip in rice prices only at the wholesale market level, Karim informed adding, no significant decline has been recorded in traditional markets.

Based on the food price panel of the National Food Agency (Bapanas), as of March 4, 2024, the price of medium-grade rice has increased by 0.41 percent to reach Rp14,390 per kilogram, and the price of premium-grade rice has climbed 0.67 percent to Rp16,570 per kilogram.

To meet the surge in demand, the Ministry of Trade has given several directions to business actors/associations.

First, the ministry has urged business actors to prepare additional supplies and stocks to anticipate increased demand.

Second, the ministry has asked them to utilize inter-regional trade cooperation patterns and information on harvest potential from the Ministry of Agriculture/regional governments to restock supplies.

Third, the ministry has asked business actors to take reasonable profit and not engage in price speculation and hoarding.
"Fourth, please fulfill DMO (Domestic Market Obligations) obligations for associations and cooking oil producers. Fifth, the government will help through Bulog to accelerate rice supply in retail," he added.

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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Rahmad Nasution
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