The government's rice reserves at the end of 2023 and early 2024 are increasingly strategic. Not only because national production and international trade in rice are limited but also 2024 is a political year.
The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found inA worker fell asleep at the Cipinang Rice Wholesale Market in East Jakarta on Tuesday .
There are a number of alternatives to fulfill the rice reserve. Among them is to prioritize absorbing domestic production while still opening up opportunities for imports to meet the availability of rice. The government through Bulog also intervenes in the market through a food supply and price stabilization program . Bulog noted that SPHP distribution from the beginning of the year to the beginning of September 2023 reached 756,000 tons or an average of around 94,500 tons per month.
"The demand will be very high, while the production from the harvest season is not yet available. My assumption is that there will be no social assistance in December 2023, so from January to March 2024, the government will distribute social assistance due to the rise in prices. If there is social assistance from January to March, the stock of 1 million tons will decrease by another 640,000 tons. Not to mention for SPHP," he said.
If the situation does not allow for it, another option to absorb domestic production is through the Bulog commercial scheme as a commercial company that can then be converted into a CBP. While prioritizing the absorption of local production, the government also needs to maintain import opportunities to meet the availability of CBP. This is important considering the productivity of rice or domestic rice is still suppressed due to the drought conditions and entering the famine season.The atmosphere at Bendul Merisi Market, which is one of the centers for rice sales in Surabaya, East Java, on Tuesday , is tense. The price of rice is currently rising above the highest retail price.
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