BPS: Increased Rice Prices Due To Weather Factors And Infrastructure Access

Illustration of rice (Photo: dock. Antara)

JAKARTA - The Central Statistics Agency (BPS) noted that rice commodities experienced 0.64 percent inflation on a monthly basis or month to month (mtm) with an inflationary contribution of 0.03 percent in January 2024.

Acting Head of BPS Amalia Adininggar Widyasanti said that the increase in rice prices was still occurring in 28 provinces when the government had distributed 10 kilograms (kg) of rice food social assistance (bansos) per month.

"The increase in rice prices is still occurring in 28 provinces, while rice prices in the other 10 provinces have shown a decline. All provinces on the islands of Java and Bali Nusra have experienced an increase in rice prices," he said at a press conference, Thursday, February 1, 2024.

Amalia explained that the increase in rice prices was influenced by price increases in the global market because a number of countries were holding back their exports.

"One of the issues of increasing rice prices is also because several countries hold back rice exports so that rice prices in the global market also increase," he explained.

Amalia conveyed domestic sentiment because supplies in a number of areas were relatively lower than demand.

"The price of rice is high because it is influenced by relatively low supply compared to high demand," he said.

Amalia said this was exacerbated by weather factors due to the impact of El Nino and even made the supply estimated to be a deficit so that the government had to take the import route and damage to several access road infrastructure caused delays in distribution.

"The rice harvest is relatively lower due to the weather factor, El Nino is prolonged. As we have previously said, for January and February, BPS estimates that rice production is still relatively lower than consumption or a deficit occurs in accordance with the numbers we received from KSA (regular sample areas) of rice," he added.

A number of commodities experienced deflation in January 2024, including cayenne pepper, red chili, and air transport rates. The deflation in the three commodities is relatively deeper than in January 2020-2023, where in January 2024 red chilies experienced deflation of 16.25 percent, cayenne pepper 25.72 percent, and air transportation rates 10.95 percent.

For information, the increase in rice prices in January 2024 occurred in all distribution chains. As reflected in the price of rice at the milling level, it rose 1.62 percent (mtm) and rose 21.78 percent (yoy).

Furthermore, wholesale rice prices rose 0.97 percent (mtm) and rose 16.66 percent (yoy). Rice prices at the retail level also rose 0.63 percent (mtm) and rose 16.24 percent (yoy).

Then, the increase in rice prices also boosted the price of unhulled rice at the farmer level. The dry rice harvest rose 2.97 percent (mtm) and rose 18.64 percent (yoy), while the dry milling unhulled rice rose 4.85 percent (mtm) and rose 24.52 percent (yoy).