November 2024 Rice Price Deflation 0.45 Percent Caused By Abundant Stock

JAKARTA - The Central Statistics Agency (BPS) noted that rice prices deflated in November 2024 by 0.45 percent with a deflation of 0.02 percent.

Acting Head of BPS, Amalia Adininggar Widyasanti explained that this decline occurred in 26 provinces with the deepest deflation occurring in mountainous Papua, which experienced a rice commodity deflation of 4.64 percent.

Amalia explained that historically the pressure of rice commodity inflation in November 2024 showed a decline compared to October and this has happened over the past three years.

Amalia said the decline in rice prices occurred due to a harvest that caused stock to overflow in several production centers during November 2024 in a number of areas.

"Almost in most areas, the central rice production has decreased in prices in November," Amalia said at a press conference at the BPS Headquarters, Monday, December 2.

Amalia said that the cause of rice deflation occurred due to lower prices ranging from harvested dry unhulled rice (GKP), milling dry unhulled rice (GKG), medium rice, and premium.

In addition, Amalia explained that the most significant decline in the price of milled dry unhulled rice occurred in Bali and Jambi due to abundant stocks in milling which caused the price of unhulled rice to decrease at the milling level.

"For Bali, it happened because of an increase in stock, because there was indeed a harvest in Tabanan. Meanwhile, Jambi saw a lot of unhulled stock in the mills," he added.

"For the price of dry milling unhulled rice, it has decreased in West Sumatra and Jambi because there are still a lot of stocks being milled and there are harvests in Jambi," he added.

According to Amalia, the condition of the abundance of stock also affects prices at the milling level and this decline does not only occur in medium quality rice, but also in premium quality.

"With the decline in the price of unhulled rice at the farmer level and the large number of rice stocks in mills, this is of course what triggers the decline in rice prices in mills," said Amalia.

"Premium and medium quality rice has decreased the same", he added.