Rice Prices Are Predicted Not To Drop In The Near Future

Illustration. (Photo: Doc. Antara)

JAKARTA - Economic observer from the Islamic University of North Sumatra (UISU) Gunawan Benjamin appreciated 10 kilograms of rice assistance per month from the government, which was given for three months since April 2023, for 21.3 million beneficiary families.

"This is positive because it seems that the price of rice will be difficult to fall in the future," said Gunawan, in Medan, quoted from Antara, Tuesday, April 11.

According to him, the rice assistance can increase people's purchasing power, which is struggling daily with the fulfillment of basic needs.

If there is no assistance and rice prices increase, then residents in that group are forced to reduce or reduce the quality of consumption.

"It's dangerous, because their ability to buy other necessities is also reduced," said Gunawan.

He predicts that rice prices will not fall in the near future, one of which is because the government's policy of increasing the purchase price of the government (HPP) for water-graded rice is a maximum of 14 percent, broken grains a maximum of 20 percent, two percent of the menir item in Perum Bulog's warehouse, to Rp9,950 per kilogram on March 15, 2023.

Then, there is also the potential for dryness due to the El Nino phenomenon in mid-2023 which can make rice fields fail to harvest.

"Even so, there is good news that the government will open the import tap. It can prevent rice prices from increasing. Moreover, public consumption has recently continued to decline," said Gunawan as well.

President Joko Widodo (Jokowi) announced the launch of food aid in the form of rice from government rice reserves to 21.3 million beneficiary families, on the sidelines of his visit to Perum Bulog Pusat Distribution Ngabeyan, Kartasura, Sukoharjo Regency, Central Java, Monday.

"This assistance is expected to reduce rice prices. This is the main harvest period in almost all provinces. I have checked in East Java, South Sulawesi, Central Java, West Java which harvests. So supply, supply problems, there are no problems," said President Jokowi.