After Oplosan Rice, Traditional Market Traders And Small Milling Are Benefited

JAKARTA - Minister of Agriculture (Mentan) Andi Amran Sulaiman revealed that after the adulterated rice case, there was a significant shift in the structure of the rice market in Indonesia.

Consumers are now spending more on traditional and retail markets that get supplies from small and medium mills, so their sales soar.

This shift makes rice stocks in traditional markets abundant and prices more transparent. In traditional markets, the price of medium rice is around Rp. 13,000 per kilogram (kg), much cheaper than the premium price in modern markets which reaches Rp. 17,000' Rp. 18,000 per kg.

"This will form a new market structure that is more profitable for producers and consumers. In traditional markets, the price of medium rice is around Rp. 13,000 per kilogram, much cheaper than premiums in modern markets which reach Rp. 17,000' Rp. 18,000," Amran said in his official statement, Wednesday, August 13.

In addition to bringing blessings to traditional market traders, small and medium scale rice mills also enjoy it. "What is happening today is a small milling party because the supply is abundant. The government wants small businesses not to be oppressed so that the people's economy continues," said Amran.

Amran explained that large factories often buy unhulled rice at higher prices, namely Rp. 6,700 Rp. 7,000 per kilogram, compared to small factories that buy around Rp. 6,500 per kilogram.

This often makes small mills difficult to get supplies. The government, he said, is committed to maintaining the sustainability of small milling businesses to support the people's economy.

He added that the current national rice stock is in a safe condition with a surplus of 3.9 million tons, after market operations through the Supply Stability and Food Price (SPHP) program of 1.3 million tons. Rice supplies will continue to be poured into the market to stabilize prices while strengthening small traders.