RI RICE PRODUCTION BELOW TARGET

by Andi Abdussalam

Jakarta, Nov 20 (ANTARA) - Indonesia is expected to import rice to cover its rice shortage as its  production this year is estimated to be below the target due to unfavorable climate and planting pattern changes.          "A third rice production forecast by the central board of statistics puts the figure at 65 million tons. If in the coming two months (November-December) improvements can be made, the figure could be 66 million tons. This means we will still miss our target by 4 million tons," Deputy Agriculture Minister Rusman Heriawan  said over the weekend.          The government has set a production target of 70 million tons of unhusked rice in 2011. But the country's rice production  is likely to reach only 66 million tons of unhusked  rice which would be below the targeted figure of the 70 million tons.          According to the deputy minister, it is difficult to say at present that the target would be met because of the changed planting pattern as a result of climate change. The deficit of four million tons could only be covered in the 2012 harvest season.          "The planting pattern is changed so that four million tons are to be harvested in 2012," he added. However, the target of 74 million tons next year is achievable. "I have calculated  that in 2012 we will see a production increase, perhaps an extraordinary one," he said.          Rice is the main staple food in the country with a population of about 237.6 million. Its annual rice need reaches 33 million tons.          In order to cover the shortage of rice stocks at the end of this year the government will still import about 500 thousand tons  to meet its  need for the staple  until the end of 2011.          President Director of state-owned logistics agency  Bulog, Sutarto Alimoeso, said the Indonesian government was importing an average of 250 thousand tons of rice each month.          "Based on our calculations, Indonesia needs 500,000 additional tons of imported rice to meet domestic needs until the end of the year," he said. The calculations  had passed a series of analysis by various parties in a number of meetings held at the finance ministry.          "The volume to be imported is ultimately to be decided by the government but according to our calculations, we need approximately  500,000 more tons," he said.          With the addition of 500,000 tons, Bulog was convinced the national rice stocks would  be enough for the coming five months which would aggregate about 1.8 million tons.          He said that up to now, Indonesia had already  imported a total of 700,000 tons  from Vietnam and Thailand.          Based on data available at the Central Board of Statistics (BPS), Indonesia's total rice imports through several ports in the January - September 2011 period have reached 1.870 million tons.          As per October 2011, Bulog alone has imported 536 thousand tons of rice or less than a half of the 1.2 million tons Indonesia had contractually intended to buy from Vietnam. Meanwhile, the government has canceled earlier a plan to import 300 thousand tons of rice from Thailand.          According to Rusman Heriawan, the Indonesian government has so far imported rice from Vietnam and Thailand as the biggest rice exporting countries. Yet, the floods that hit Thailand have made Indonesia to seek another rice exporting country which has enough rice reserves like India.          "It is now difficult to find countries which want to export rice, even,  rice exporter countries now are imposing complicated requirements," he said.          But Trade Minister Gita Wirjawan said on Saturday that Thailand and Vietnam have signed a new agreement to export rice to Indonesia.          "Thailand will remain exporting 300,000 tons of rice to Indonesia this year," Gita Wirjawan said on the sidelines of the 19th ASEAN Summit at Bali International Convention Center in Nusa Dua on Saturday.          In the meantime, Indonesia and India have not yet completed their negotiations on the plan of Indonesia to import 500,000 tons of rice from that country.  Until now, both sides have not yet reached an agreement, while negotiations are still continued. "India asked for too rigid requirements. India has enough rice reserves and this is for the first time Indonesia is willing to cooperate in the rice import with India," Rusman said.          He said the Indonesian government was facing difficulties in importing rice because Thailand as a main rice supplier country to Indonesia was experiencing a production decline by about 10 to 15 million tons due to the floods.          "Thailand is of course willing to reinforce its food resilience following the floods," Rusman said.          Yet, Trade Minister Gita Wirjawan disclosed on Saturday that Thailand along with Vietnam had renewed its commitment to exporting rice to Indonesia     Gita said the agreement of Thailand and Vietnam to export rice to Indonesia was stipulated in a memorandum of understanding (MoU) as part of a bilateral meeting during the ASEAN Business and Investment Summit.         Gita explained that although Thailand was hit by devastating flood recently, the country would supply rice to Indonesia, and committed to supplying 1 million tons of rice per year from 2012 to 2016.          The renewal of the commitment assured that the needed to import rice this year could be met. After all, according to Rusman, it is impossible for Indonesia to import rice from Japan, South Korea, China and the United States because rice from these countries were too expensive.          In addition, Indonesia is also still negotiating rice imports from India. According to Bulog Chief Sutarto Alimoeso, rice imports from India are expected to arrive in Indonesia next month.          "Hopefully, the imports will be arriving early in December. We have agreed to import 250,000 tons," Alimoeso said last Thursday.          He said that the imported rice would be used to increase Bulog's rice stocks. "It is for a standby stock in the face of a possible rice crisis  up to four months ahead," Sutarto Alimoeso said.***5*** (T.A014/A/H-NG/16:20/A/S012) 20-11-2011 17:06