Head Of Badanas: Determination Of Grain And Rice HPPs Is A Price Safety Net At The Farmers' Level

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi said that the determination of the purchase price of the government (HPP) for grain and rice is a price safety net at the farmer level.

"The determination of the HPP ahead of the main harvest is really needed by farmers. This can provide certainty of prices for Bulog absorption and is proven to be able to keep prices at the producer level safe from falling prices that are very deep during the harvest," said Arief in a statement in Jakarta, quoted from Antara, Tuesday, July 16.

According to him, determining the HPP of grain and rice is the right effort, as an optimistic step for the government to maintain the hopes of farmers and support domestic production.

Arief said that the HPP of unhulled rice and rice set by the government through the National Food Agency became the basis for Perum Bulog in absorbing domestic production, intended as a price safety net at the farm level.

"This is because the fluctuations in the price of unhulled rice are greatly influenced by the harvest season. During the main harvest season, the price of unhulled rice can fall due to a surge in yields. On the other hand, when the famine season arrives, the price of unhulled rice starts to rise until there is a next harvest," explained Arief.

In the statistical evaluation of the price of a 2023 grain producer issued by the Central Statistics Agency (BPS) in July 2024, Arief said, it was stated that the percentage of cases of unhulled prices under HPP was relatively lower throughout 2023 compared to the previous year. This is influenced by the increase in the selling price of unhulled rice and demand compared to the previous year.

According to Arief, in 2024 it is more challenging because of the decline in the main harvest, which is usually in March, moving to April. At that time, Badanas immediately implemented a policy of HPP's flexibility of unhulled rice to Rp6,000 per kilogram.

"Of course this is in accordance with the direction of Mr. President Jokowi who asked that the price of farmers during the main harvest should not decline sharply," he explained.

The development of rice production in 2024 according to the BPS Area Sample Framework (KSA) was published in the third week of June, April 2024 is the highest point in estimated rice production which can reach 5.31 million tons. Meanwhile, the peak of rice production in 2023 occurred in March at 5.13 million tons.

Referring to KSA BPS data in May, the projected rice production in June 2024 could reach 2.02 million tons. Then in July it started to rise to 2.19 million tons and in August 2.67 million tons.

Meanwhile, according to official news of BPS statistics published July 1, 2024, added Arief, the average price of GKP in April 2024 was at IDR 5,686 per kilogram (kg) with a water level of 20.74 percent and began to improve near the HPP in June 2024 at IDR 6,171 per kg with a water level of 19.68 percent.

Furthermore, in the publication of the 2023 Grain Producer Price Statistical Evaluation, BPS reported that the highest percentage of cases of grain prices under HPP had occurred in April 2023 at 22.75 percent at the farmer level.

"This percentage decreased slowly in the following months until December 2023 it was 0.12 percent. The percentage of cases of unhulled prices under the HPP is said to be still lower than in 2022," said Arief.