Sukabumi, W Java (Antara Bali) - Agriculture Minister Andi Amran Sulaiaman launched an unhusked rice absorption program to stabilize the price of unhusked rice at the farmers' level on Saturday.
"This program is carried out as a follow up to President Joko Widodo's (Jokowi's) instruction to prevent unhusked rice price from falling at the farmer's level," Minister Amran said in Sukabumi, West Java, on Saturday.
In order to carry out this program, the ministry of agriculture involved the state logistics board (Bulog) which is expected to purchase unhusked rice and rice. This will help cut the distribution chain and the farmers would be able to enjoy the consequent benefits as a result of lesser people in the distribution chain.
He said with the Bulog directly purchasing the rice, farmers would be encouraged to continue cultivating their rice fields, thus ensuring more production.
The minister said he was disappointed to know that the price of unhusked rice at the farmers' level was only Rp3,700 per kilogram (kg) and the rice was being cornered by middlemen.
He said the rice purchase program carried out by Bulog will benefit the farmers.
So far, invariably the middlemen benefit during the harvest season as they buy rice from the farmers at a price of Rp3,700 per kg, much lower than the government's sanctioned reference price (HPP) of Rp4,600 per kg.
The minister said the rice purchase program is expected to absorb four to five million tons of rice from the farmers. (WDY)
