Production Drops, Rice Prices Are Predicted To Rise Again

Rice (photo: Doc Antara)

JAKARTA - The National Food Agency (Bapanas) predicts that rice prices will increase again. The increase was triggered by the decline in domestic rice production.

Head of Badanas Arief Prasetyo Adi said domestic rice production in the second semester or July to December 2024 is predicted to decline.

Furthermore, Arief explained that the low production will raise the price of grain. As a result, it will affect rice prices.

"In the second semester, production will definitely be below, so there must be a fight for grain and that triggers prices to increase at the end of every year. In fact, this year it is estimated that in the next two to three months it will be predicted to increase," he said in a hearing with Commission IV of the DPR, Parliament Complex, Jakarta, Monday, June 10.

In fact, Arief also said that the increase in the price of unhulled rice and rice is predicted to penetrate the highest retail price (HET) and the price of government purchases (HPP) that have been increased.

The increase in HET and HPP has been stated in the National Food Agency Regulation (Perbadan) Number 5 of 2024 concerning Amendments to the Agency Number 7 of 2023 concerning the HET of rice. Also, Per Agency Number 4 of 2024 concerning changes in the purchase price of the government and the relationship between the price of grain and rice.

"There is a possibility (increase above the HPP) when the grain is low," he said.

Arief also said that referring to the Area Sample Framework Survey (KSA), the Central Statistics Agency (BPS) is predicted for the period January to July 2024, rice production is only 18.64 million tons.

"Based on the projected KSA BPS, April 2024, the total production of rice from January to July is 18.64 million tons, 2.47 million tons lower than the same period the previous year," he said.

Furthermore, Arief said that this condition became a understanding of the government, especially the National Food Agency, considering that Indonesia would face the dry season.

"This is our concern to face the following months considering we are entering the dry season," he said.