RICE STOCKS ENOUGH TO FACE FASTING MONTH

By Andi Abdussalam

Jakarta, July 7 (ANTARA)  -  The government has assured that rice stocks in the face of the fasting month next August were enough with the National Logistics Agency (Bulog) preparing 800 thousand tons for both market operations and commercial retail market.          In addition, Bulog has a rice stock of 1.6 million tons. Head of  Bulog Sutarto Alimoesa said at the State Palace  recently that rice stocks were enough until the post-fasting month of Ramadhan in August 2011.          "Stocks are enough for six months ahead. Our supplies are estimated at 1.6 million tons. God Willing, we will have no problems in the post-fasting month festivities," he added.          "We can even guarantee that rice stocks are enough until the end of 2011," Bulog  Chief Sutarto Alimoeso said. After all, according to the Indonesian Central Board of Statistics (BPS), this year Indonesia's rice production is estimated to rise by 2.4 percent this year.          "There will be an increase of 2.4 percent," the agency's chief, Rusman Heriawan. So, rice production is estimated to reach 68.06 million tons of dried unhulled rice this year up 1.59 tons from 2010. The figure is more or less equal to 35 million tons of husked rice.          Besides the estimated production, the government is also prepared another step should it was forced to face shortage of rice. It will import rice this year if domestic supplies fall short of needs, Vice Agriculture Minister Bayu Krisnamukti said meanwhile.          "As I said before, the most important thing is that the government must have (adequate) rice stocks. If imported rice is really needed and if the situation makes it impossible for us to rely on domestic supplies, we will import it," he said.          He said that import would be done more carefully, including importing rice to strengthen stocks. The government still waited for further developments. What is clear, it will open the option to import rice.          Bayu Krisnamurti made it clear there were three factors underlying the government's plan to import rice, namely rice price movement, domestic output and stocks.          selves the target of achieving a rice surplus of 10 million tons," he said.       He said the country now had rice stocks of 1.6 million tons, while the government needed 280 thousand tons per month as subsidized rice for the poor.          The lower-than-expected domestic rice supplies due to unfavorable weather prompted the government to make every effort to save rice stocks, he said.          According to Trade Minister Mari Elka Pangestu, the government would be more conservative in maintaining rice stocks in order to meet the people's need for the staple.          "We will be more careful and conservative in maintaining rice stocks," the minister said here on Wednesday.           She said  rice stocks must be maintained due to various factors such as unfavorable weather and possible harvest failure at the end of the year. Thus,  in collecting rice stocks, priority would be given to procurement at home but the possibility of importing one was not ruled out if purchase at home was not enough.          "Most of rice supplies originate from domestic rice," Mari said.  She said that the government would take whatever step in securing the stability of rice stocks and prices at home.          Among the efforts the government would do was to conduct market operations in a number of regions.  Sutarto said that Bulog was preparing  800,000 tons of rice to be released into the market. Of the amount, 500,000 would be for market operation and 300,000 tons of commercial rice.          Actually, Bulog has now begun conducting market operations  at a number of locations to stabilize the fluctuation rice prices. With the government step, the people should not be worried about shortage of stocks in the face of the fasting month and the festivities thereafter.          Therefore, Trade Minister Mari Elka Pangestu called on the people not to worry about rice availability despite its fluctuating prices in the run up to the fasting month of Ramadhan.          "There is no need to worry about rice stocks and the fluctuating prices because the government will maintain the rice security and stabilize its prices," Mari said.          However, the production of corn and soybean ,two type of commodities needed in the next fasting month are expected to decline. Rusman said the production of the two commodities was expected to drop compared to that of 2010.          Corn production in 2011 is estimated to reach 17.39 million tons down 5.10 percent from last year's.  Soybean production in 2011 meanwhile is estimated to reach 819,450 tons down 9.66 percent from last year's.           The director general of food crops of the ministry of agriculture, Udhoro Kasih Anggoro, admitted the BPS's upward prediction by 2.4 percent did not match with his target of hike set at 5.2 percent.          "We can expect a lot of opportunities (to increase production)," he said.***5*** (T.A014/ A/H-NG /a014) (T.A014/A/A014/A/A014) 07-07-2011 23:33:5