Bulog likely to import 2.25 million tons of rice this year

Wed, 03/28/2012 - 08:35
IN

The State Logistics Agency or Bulog is unlikely to be able to meet this year’s target of purchasing up to 4.5 million tons of rice from local farmers due to rising price of the commodity at home.  As a consequence Bulog would have to import more rice this year.

Rice millers and farmer’s group leaders interviewed by Kompas predicted that Bulog would only be able to purchase between 1.8 million and 2.5 million tons, or about 40-50 percent of the target, required to help bolster the nation’s rice reserves. 

Kompas reported on Wednesday that price of rice will increase in line with the planned increase in the price of subsidized fuel products.  As a result of failing to meet the domestic rice absorption target, Bulog will be forced to import around 2.25 million tons of rice this year.

Rice millers also said that Bulog would face tough competition with traders in purchasing rice from farmers amid limited domestic production this year.  Although output is projected to increase this year, it is still limited considering the huge domestic consumption. (rei)  

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