With the signing of the decree, the National Logistics Agency (Bulog) is required to buy rice from farmers at above the base-buying price.Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has signed a decree setting the government`s base purchasing price of rice at Rp6,600 per kg for this year, a 27-28 percent increase over past years.
"The increase is quite good," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Wednesday.
With the signing of the decree, the National Logistics Agency (Bulog) is required to buy rice from farmers at above the base-buying price.
Hatta further said the new base-buying price favors farmers.
The increase accords with the proposal by the agriculture minister who sought a 27-28 percent rise in the base-buying price of rice and un-hulled rice.
According to agriculture ministry officials, the base purchasing price of rice should ideally be set at a range of Rp6,000 to Rp7,000 per kg.
The price hike, however, received a cool response from farmers in Central Sulawesi province.
"The increase is a tidy sum, but still has not much influence because the price of rice at the farmers� level is currently far above the government`s rice purchasing price," said Jhony, a chief of the farmers' group in Palolo subsistrit, Central Palu, on Thursday.
He noted that the new base-buying price only serves as a price standard for Bulog when purchasing farmers` rice.
Lewis, a farmer from Tolay village, Parigi Moutong district, said the price of rice at the local market is currently Rp8,000 kg.
Also, Bulog officials previously said that the 28% percent increase in the base-buying price will raise the amount of subsidized rice for the poor by Rp5 trillion.(*)
Editor: Heru Purwanto
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