Ministry Of Trade Concerned That The Russo-Ukrainian War Will Disrupt The Supply Of Imported Staples: Prices Of Wheat, Cattle And Sugar Potentially Rise

Illustration. (Photo: Doc. Antara)

JAKARTA - The Director General of Domestic Trade at the Ministry of Trade, Oke Nurwan, said he was worried that the supply of basic commodities that depend on imports would be disrupted when domestic demand increases. This is because of the war between Russia and Ukraine.

"The Ministry of Trade continues to monitor international commodity prices with geopolitical situations that have the potential to disrupt supplies, especially basic goods. Geopolitical tensions between Russia and Ukraine have also increased pressure on commodity prices," he said during a hearing with Commission VI of the DPR, Wednesday, March 30.

According to Oke, based on the Ministry of Trade's monitoring, four domestic food commodities that depend on imports experienced a significant increase in prices.

First, said Oke, the price of wheat was recorded to have increased to 399 dollars per tonne on March 25 trading. When compared to last year's 188 US dollars per tonne, the increase reached 93.6 percent.

Then, continued Oke, soybean prices were also affected by the geopolitical tensions between Russia and Ukraine. Where soybean prices in the global market have penetrated Rp. 8,875 per kilogram (kg) on March 25 trading. An increase of 95.6 percent when compared to last year's position of Rp4,528 per kg.

Apart from wheat and soybeans, said Oke, the price of cattle also increased to touch US$4.28 per kg on March 22 trading. This figure is up 72 percent from last year's position which was in the range of US$ 2.49 per kg.

Next is sugar consumption. The price of these commodities increased by 51.6 percent from Rp. 5,145 per kg to Rp. 7,802 per kg on an annual basis on March 25 trading.

"However, based on the results of coordination with business actors and agencies related to the availability of supplies during the 2022 Eid al-Fitr period, it is certain that there is sufficient resilience for the next 1.1 to 2 months," he said.