Rice Prices Rise, Bulog Calls The Impact Of High Grain Prices

Bulog Business Director Febby Novita at the Fun Morning Bulog event, Jakarta, Sunday 4 August 2024 (Aris Nurjani/VOI)

JAKARTA - The Bulog Public Company (Perum) revealed that the recent increase in rice prices was due to the high price of harvested dry unhulled rice (GKP) at the farmer level.

Bulog Business Director Febby Novita explained that currently the price of unhulled rice has reached Rp. 7,000 per kg or above the government's purchase price (HPP), which is Rp. 6,000/kg. So that his party currently only gets premium rice production.

"Because indeed, if the price of unhulled rice is Rp. 7,000-Rp. 6,800, we only have two times if we want to be rice. Even though we have to pack and others, process, not to mention others," he explained after the Fun Morning Bulog event, Sunday, August 4.

Febby explained that the price of rice is determined based on the price of GKP twice so that if the price of grain is already high, the price of rice will follow and currently the HPP of unhulled rice is above the normal price.

"Because now the dry rice is also high, even though there is a harvest," said Febby.

According to Febby, the increase in the price of unhulled rice indicates that the number of harvests in production centers is starting to be limited. So there is the potential for a fight over unhulled rice at the rice milling level to maintain productivity. Meanwhile, his party has absorbed rice from within the country in around 150,000 rice milling places.

"We also have a commercial, where we help and we guarantee that we sell this rice never above the HET," he said.

In addition, Febby said that the increase in rice prices also occurred because there was no distribution of food aid last July so that 22 million Beneficiary Families (KPM) returned to the market for rice shopping.

On the other hand, the distribution of Bulog's Supply Stabilization and Food Price (SPHP) rice according to the stipulation of government prices only has a market share of 10 percent. So that this condition affects changes in rice demand which has an impact on rising rice prices in the market.

Previously, the Central Statistics Agency (BPS) noted that in July 2024 there was inflation in rice commodities of 0.94 percent on a monthly basis or month to month (mtm) with a contribution to general inflation of 0.04 percent.

Acting Head of BPS Amalia Adininggar Widyasanti said that rice commodities experienced inflation after previously experiencing deflation in April and May 2024.

"After experiencing a deep deflation in April and May 2024. The commodity of rice experienced inflation in the last two months. This is in line with the reduced amount of rice production after the peak of the rice harvest," Amalia said at a press conference, Thursday, August 1.

According to Amalia, the return of the rice inflation trend is in line with the reduced amount of rice production after the peak of rice harvest. This is also reflected in the rice inflation trend that occurred in 25 provinces.

"This shows that rice inflation is not limited to one region, but also occurs in various parts of Indonesia," he said.

As for rice production in July 2024, it reached 2.18 million tons, this value increased when compared to the previous month's 2.06 million tons.

Meanwhile, when compared to the main harvest season in April and May 2024, the amount of rice production in July 2024 fell sharply. As for rice production in April, it reached 5.31 million tons and in May 2024 it reached 3.61 million tons.