Ahead Of The Grand Panen, The Government Regrets The Price Of Gabah And Rice

Illustration of unhulled rice (Photo: Doc. Antara)

JAKARTA - The government through the National Food Agency (Bapanas) together with rice milling business actors agreed on the purchase price of grain and rice ahead of the rice harvest period in March 2023.

Head of Bapanas Arief Prasetyo Adi said the agreed increase in the price of unhulled rice reached eight to nine percent.

The determination of the retail price or price for this upper purchase will take effect on February 27 until the deadline will be determined later.

The purchase price for the Panen Dry Grain (GKP) at the Farmer level is IDR 4,550 per kg; GKP at the Milling Level IDR 4,650 per kg; Milling Dry Grain (GKG) level IDR 5,700 per kg; and Medium Rice at Gudang Perum Bulog IDR 9,000 per kg.

"The agreed lottery price is about 8 to 9 percent higher than the government's purchase price (HPP) stipulated in the Regulation of the Minister of Trade Number 24 of 2020. The increase is of course considering the increase in the current cost of production," he said in an official statement, Tuesday, February 21.

According to Arief, the selling price is very important and crucial in preparation for the main harvest.

The reason is, the selling price will be an upper limit for the purchase price of grain or rice for rice mills, so that both large and small rice mills have the same price ceiling.

"This retail price agreement is very important so that in the main harvest there will be no purchase of grain or rice at the farm level at uncontrolled prices and even tends to be too high due to free competition between mills in order to get grain or rice," he explained.

The price of the lower limit or floor price for the purchase of grain or rice refers to the HPP regulated by the Minister of Trade Regulation Number 24 of 2020, namely the Farmer's Level GKP Rp4,200 per kg; GKP Milling Level Rp4,250 per kg; GKG Milling Level Rp5,250 per kg; and Medium Rice at Perum Bulog Warehouse Rp8,300 per kg.

Arief said the agreement was a joint commitment between the government, annealing, and other extortion business actors.

The agreement was marked by the signing of a meeting agreement sheet by the Head of Bapanas, Perum Bulog, and the National Police Food Task Force represented by Kombes Hermawan.

Arief said the results of this agreement were then submitted to rice milling business actors in Indonesia, Bulog, and related stakeholders through the Circular Letter of the Head of the National Food Agency Number 47/ts.03.03/k/02/2023 concerning the Price of Limits on Purchase of Gabah or Rice.

This is a form of the Government's commitment to business actors. In line with President Jokowi's direction to work together and rise from the crisis to grow together and rise stronger, grow together, grow a stronger," he said.

Arief said that the initiation of this price agreement was also a form of the government's presence to keep rice prices stable at the farmer and consumer levels.

As is known, the current high price of rice is due to the lack of availability of grain in the field, so that at this time it is found that the average rice milling business has only about 10-20 percent of normal conditions.

Concerns about the seizure of grain during the main harvest period which can cause high rice prices and the lack of absorption of Bulog need to be anticipated to avoid greater losses, so efforts to control inflation need to be carried out early.

"This step is also in line with the direction of Mr. President Jokowi who directly asked NFA to maintain the Small and Preventing Padi Mill, so that in balance it gets unhulled at a reasonable price and prepares Bulog as an offtaker ahead of this harvest," he explained.

Arief continued, the agreement on the upper limit for the purchase of grain or rice is also part of preparing Bulog so that it can optimally absorb the main harvest according to President Jokowi's direction.

As is known, in 2023 NFA assigns Bulog to absorb 2.4 million tons for Government Rice Reserves (CBP), of which 70 percent is realized at the harvest moment of Semester 1-2023 this March.