Aceh to Import Rice Due to High Market Price

Submitbookmarker - The Aceh regional division of state-owned logistics company Bulog plans to import 30,000 tons of rice from Vietnam due to the high price of the commodity in the market.

"We are forced to conduct import because the price has risen above the government buying price of Rp5,800 per kilogram," the head of the division, Fachriani, said here on Thursday.Fachriani said Bulog in Aceh had already added an incentive of Rp400 per kilogram to the government standard price of Rp5,400 per kilogram but the efforts had yet to result in increased supply.

Domestic rice procurement until October 2010 reached 35,183 tons consisting of 32,398 tons at a price below the standard price (HPP) and 2,600 tons at an incentive price. Annual demand for rice for the poor and emergencies meanwhile reached 90,000 tons.

"It means that at the current level supply is not able to meet the need in Aceh and therefore Bulog will procure rice abroad," he said.

In 2010, Bulog in Aceh would import 30,000 tons, consisting of 6,750 tons to be done at the end of October and 6,500 tons early in November through Krueng Geukeuh port in North Aceh. He said the low production during the dry harvest season in Aceh was among the factors that had caused the domestic procurement targeted at 60,000 tons from the region was not reached.

He said although Bulog would import rice the company would stil accomodate 16,000 tons of rice at an incentive price allocated by the central government to Aceh. According to him, the procurement from home and abroad was expected to be able to meet demand until February 2011.