Badanas Calls Rice Prices Expensive In The Market Due To Large Production Costs

Director of Food Distribution and Reserves of Badanas Rachmi Widiriani. (Photo: Doc. ANTARA)

JAKARTA - The National Food Agency (Bapanas) said the high price of rice in the country was influenced by the large production costs.

Director of Food Distribution and Reserves, Bahanas Rachmi Widiriani, said that farmers have the right to get profits because the costs incurred to plant rice are not small.

This has an impact on high prices in the market.

"It is true that the price of rice in the country is currently high, but indeed the production cost is also high, so if we demand the cost factor for rice production in the country, if we pay attention, it is indeed high, so farmers also have the right to profit," said Rachmi, quoted from ANTARA, Friday, September 20.

Rachmi explained that currently farmers are making quite a profit, because the price of unhulled rice purchased is above the Government Purchase Price (HPP).

The Farmer's Exchange Rate (NTP), especially food crops, said Rachmi, is currently also at a good price.

According to him, this is related to each other so that consumers will easily get rice at an affordable price.

"If the seeds are good, the productivity will increase, then the production of the land units will also increase, farmers will get genes or better proceeds from sales. Maybe over time, if for example the area of agricultural land with the improvements made, prices will be relatively stable," said Rachmi.

However, Rachmi underlined that farmers must still benefit from agricultural businesses.

In addition, efficiency is needed to increase productivity through innovation and the use of technology.

Rachmi gave an example, the use of drones for fertilizer distribution is actually 30 percent more efficient than manually. The results of the distribution of fertilizers are considered more evenly distributed for large land.

Furthermore, efficiency such as this can be implemented to save production costs.

"Indeed, I have to do efficiency. So with efficiency, productivity increases, farmers will get two benefits, good prices, then good income, production is high, the price will be stable over time," he said.

At the Indonesia International Rice Conference (IIIRC), in Nusa Dua, Bali, Thursday, September 19, the World Bank (World Bank) said that Indonesia's rice price was 20 percent higher than that of countries in ASEAN, but farmers' welfare was still low.

Based on the 2021 Agricultural Integrated Survey, the welfare of Indonesian farmers is still below average, even less than 1 US dollar per day or Rp15,207 and a year below 341 US dollars or Rp5 million.

This income is considered not comparable to the production costs incurred by farmers. Therefore, the Indonesian people are said to have to pay a high price of rice.