JAKARTA: Delayed harvests and dwindling supply have sent premium rice prices skyrocketing to a record high, the Indonesia Market Traders Association (IKAPPI) says.
The average price at the consumer level reached 18,000 rupiah (US$1.15) per kilogram last Friday, a 20 % year-on-year (y-o-y) increase from the 14,000 rupiah per kg recorded last year, IKAPPI said, adding that some of its constituent traders were unable to secure their usual quantities from producers.
The figure exceeded the government price ceiling for premium rice, which hovers around 13,900 rupiah per kg for regions in Java and Bali.
Premium rice is typically of much better quality than rice that is designated medium-grade.
IKAPPI secretary-general Reynaldi Sarijowan suggested that the government boost production ahead of Ramadan and ensure that subsidised fertiliser was widely available.
“The solution is releasing stocks held by the government, local companies and mills to traditional markets as well as encouraging the National Police to monitor (the process),” Reynaldi said in a statement last Friday.
National Food Agency (Bapanas) data shows that the price of premium rice was 16,270 rupiah per kg a week before, on Feb 16. Last year, the agency recorded a price of 14,990 rupiah per kg.
Prices have continued to increase despite the government’s efforts to flood the market with supplies of medium-grade rice, labelled as stabilisation stock, which was procured though a series of imports last year. — The Jakarta Post/ANN
