Many Rice Milling Rolls Out, Minister Of Agriculture: Capacity Too Large, Limited Production

Minister of Agriculture Andi Arman Sulaiman. (ANTARA)

JAKARTA - Minister of Agriculture Andi Arman Sulaiman opened his voice about the large number of small rice mills that have been closed recently. He said this condition was not a new phenomenon.

"Ada yang menulis kemarin bahwasannya, pabrik (pangolinan) kecil tutup, itu sudah lama terjadi," ujar Amran dalam keterangan resmi, Minggu, 17 Agustus.

Amran said the phenomenon occurred due to imbalance in milling capacity with rice production. He said the number of small mills in Indonesia reached 161,000 units, with a milling capacity of 116 million tons per year.

Meanwhile, continued Amran, national rice production is only around 65 million tons. This means that the milling capacity far exceeds the total production so that many machines are unemployed.

"If the capacity is 116 million, then Indonesia's rice production is only 65 million tons, isn't it idle?", he said.

For your information, idle machines are rice milling machines that do not operate because the mill capacity is greater than the amount of grain available. So there are machines, but often not used because the raw materials are limited.

In addition to capacity issues, continued Amran, seasonal factors have also exacerbated. Rice production was concentrated from January to June which contributed 70 percent of the harvest. As a result, in the second half the supply of raw materials decreased, some of the mills were not operating.

According to him, the inequality in prices between large and small mills also adds to the burden. Big players are able to buy grain at a higher price, thus shifting the space for small milling.

The big one shouldn't interfere with the small one. Because the small one, if he buys Rp. 6,500, the big one buys Rp. 6,700. If the small one goes up Rp. 6,700, the big one buys Rp. 7,000. That is, the small one is disturbed," he said.

Even so, Amran said there was a new opportunity for small mills. The recent decline in sales of premium rice in modern supermarkets has actually increased demand in traditional markets, which is a living space for small mills.

"This is a blessing for small mills and traditional markets," said Amran.