Rice Prices Increase In 147 Regencies/cities In Indonesia Including In Java, The Price Of Gabah Increases

Illustration of rice (Unsplash)

YOGYAKARTA - Rice prices rose in 147 regencies/cities in Indonesia. The increase was revealed by the Central Statistics Agency (BPS).

As is known, Minister of Home Affairs Tito Karnavian held a coordination meeting on inflation control which was held regularly every Monday. The meeting was attended by several ministries/agencies and regional heads and held virtually.

In the coordination meeting, it was known that various regencies/cities experienced an increase in rice prices. Ten regencies/cities with the highest potential for rice prices to increase are Ende (NTT).

"The ten regencies/cities with the highest rice price increases include Ende (NTT), Central Sumba (NTT), Probolinggo (East Java), Malinau (Kaltara), East Lombok (NTB)," said M Habibullah Deputy for BPS RI Production Statistics, quoted from Antara, Tuesday, January 21.

In addition, BPS also revealed a list of other regions that experienced an increase in rice prices in the third week of February 2023. The area is as follows.

The government through the National Food Agency (Bapanas) itself has agreed on the purchase price of unhulled rice and rice ahead of the main harvest in March 2023. From this agreement, the price of unhulled rice is known to have increased.

Head of Bapanas Arief Prasetyo Adi explained that the amount of the increase in unhulled rice reached 8 to 9 percent. The purchase price (ceiling price) was set to take effect as of February 27 until an undetermined time limit.

Meanwhile, the purchase price for the Panen Dry Exchange (GKP) at the farmer level is IDR 4,550 /kg. for GKP the milling level is IDR 4,650 /kg, the price of dry milling (GKG) is IDR 5,700 /kg, and the price of Medium Rice at Perum Bulog warehouse is IDR 9,000 /kg.

Arief explained that this selling price is important and crucial as part of facing the March 2023 harvest. Celing price will be the upper limit for the purchase of grain or rice for rice milling. That way large or small rice pangolins will have a uniform price ceiling.

The government has also agreed on a lower limit price or floor price for the purchase of unhulled rice or rice that has been agreed between the government, milling, and business actors.

The price refers to the HPP which has been regulated in Permendag Number 24 of 2020. The price of the agreement is the Farmer's Level GKP Rp4,200/kg, GKP Milling Level Rp4,250/kg, GKG Milling Level Rp5,250/kg, and Medium Rice at Perum Bulog Warehouse Rp8,300/kg.

As is known, the condition of the rising rice price that occurs is due to the lack of grain availability, so that the average rice milling business has only 10-20 percent of grain from normal conditions. Concerns about the occurrence of a shortage of grain during the harvest which triggers high rice prices and the lack of absorption of Bulog must be anticipated. This was done to avoid more widespread losses. Therefore, inflation control must be carried out early on.

"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 said.

In addition to information regarding rising rice prices, visit VOI.ID.