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The cause of low absorption of Bulog rice leads to imports of 500,000 tons

Jakarta

Absorption Rice for Perum Bulog government rice stocks (CBP) this year to be the lowest in five years. Eventually, the government decided to import to supply CBP.

So why was Bulog’s rice uptake this year so low as to lead to rice imports? For your information, CBP is a government-run rice supply through Perum Bulog to maintain rice market prices, market operations, and rice distribution during emergencies such as natural disasters.

Bulog has a government duty to have at least 1-1.2 million tons of CBP supply. However, in the actual supply data of unhusked rice through December 5, 2022, Bulog’s absorption was only 954,462 tons. Absorption in the first half year was 550,134 tons and in the second half year it was 404,329 tons.

This figure decreased from the previous year’s absorption in 2021 which reached 1,216,311 tonnes. Where in the first half of 2021 it reached 739,133 tons and 477,178 tons. The absorption in 2020 was 1,256,507 tons, in 2019 it was 1,201,264 tons and in 2018 it was 1,488,584 tons. This information was gleaned from Bulog’s presentation during a meeting with Commission IV of the DPR and the Ministry of Agriculture on December 7, 2022.

This low absorption is not necessarily the fault of Perum Bulog. According to the Agricultural Observer Khudori of the Indonesian Association of Political Economy (AEPI), Perum Bulog’s job is to absorb unhusked rice and Rice These farmers are bound by government rules, from quality to price.

“The rules are strict and you shouldn’t be careless, because if you are careless, you will cause losses. The price is set to buy wheat at Rp. 4,200 per kg first, and rice at Rp. 8,300/kg previously.” She said detik comFriday (30/12/2022).

Then, in early 2022, the price of rice skyrocketed. Meanwhile, the price of flexibility or the price of rice that Bulog will buy is still lower than the market price. Not to mention that private companies have also responded to price fixing.

The private company will buy Rice or grain farmers above the price of flexibility. At that time the flexible price for Bulog rice and brown rice was Rp. 8,300/kg or Rp. 4,200/kg, so farmers preferred to sell them to private companies. Thus, Perum Bulog’s takeover was modest at the beginning of the year because it also competed with private companies.

Rice uptake is reduced but distribution is increasing. Check out the next page.

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