Badanas Raises Government Purchase Prices For Rice And Grain

The government has officially imposed a new Government Purchase Price (HPP) of Rice and Grain.

This latest HPP has increased prices by 18-20 percent compared to the previous HPP based on the Minister of Trade Regulation Number 24 of 2020.

This is in line with the completion of the process of enacting the National Food Agency Regulation (Perbadan) Number 6 of 2023 concerning Government Purchase Prices and Rice and Rice Price Rate.

Head of the National Food Agency Arief Prasetyo Adi said, through the ratification of the Agency, the government raised the lower limit price for the purchase of grain or rice by Bulog to increase farmers' income.

Furthermore, Arief said, the increase in the new BP Gabah and Rice was in accordance with the calculation of the farmer business cost structure (Sout) collected from related ministries and institutions, associations, and national extortion business actors.

In addition, according to Arief, the decision has also gone through analysis and takes into account price balances at the farm, milling, traders, and consumer levels.

"The determination of this HPP has gone through the discussion process and pays attention to the input of all national exchange stakeholders by considering the cost of production, margin of farmers, quality of grain and rice, as well as the impact of rising inflation," he said in an official statement, Friday, March 31.

The new HPP details for Panen Dry Grain (GKP) at the previous farmer level were IDR 4,200 per kg, based on the latest HPP, increasing to IDR 5,000 per kg.

Then, the GKP at the previous milling level was IDR 4,250 per kg, up to IDR 5,100 per kg.

Meanwhile, the dry milling (GKG) at the previous milling was IDR 5,250 per kg, up to IDR 6,200 per kg.

GKG in Bulog's previous warehouse was Rp. 5,300 per kg, up to Rp. 6,300 per kg. Rice in Bulog's warehouse was previously Rp. 8,300 kg, up to Rp. 9,950 per kg.

Arief said, the increase in HPP was part of the Government's efforts to protect the basic price of grain/rice at the farmer level.

"This HPP is a regulation to regulate the purchase price of grain and rice for farmers. In the midst of this already running harvest, through the HPP instrument, we both maintain the price of grain/rice at the farmer level," he explained.

Furthermore, Arief added, after this application, Bulog's absorption of grain/rice had officially referred to the latest HPP.

Previously, Bulog carried out absorption by referring to the price of flexibility imposed on March 11, 2023 through the Decree of the Head of the National Food Agency regarding the Flexibility of Rice or Grain Prices in the Context of Implementing Government Rice Reserves (CBP).

The purchase price of GKP, GKG, and Rice both regulated in the Decree on price flexibility as well as HPP and Price Rate Rate Number 6 of 2023 is the same. However, with the issuance of the Per entity, currently Bulog purchases fully refer to the Agency considering that the automatic flexibility price rule is no longer valid," he said.

With this latest HPP, Arief said, his party continues to encourage Bulog to increase the absorption of grain/rice by picking up the ball.

This step is in accordance with President Joko Widodo's (Jokowi) order to Bulog to optimally absorb domestic crops.

"We continue to encourage the increase in grain/rice absorption of Bulog both at the farmer and milling levels. With a better purchase price, it is hoped that this big harvest Bulog can increase the absorption of grain/rice to fill the CBP stock according to the absorption target in 2023 as much as 2.4 million tons," he explained.

In the agency, it is also regulated regarding the quality standards of grain and rice that can be absorbed by Bulog.

For GKP with a price at the farmer level of Rp. 5,000 per kg and at the milling level of Rp. 5,100 per kg, it must meet water levels of a maximum of 25 percent and vacuum levels of a maximum of 10 percent.

For GKG with an mill price of IDR 6,200 per kg and in Bulog warehouse IDR 6,300 per kg, it must have quality with a maximum water level of 14 percent and a maximum vacuum level of 3 percent.

Meanwhile, rice at a price in Bulog's warehouse of Rp. 9,950 per kg must meet the minimum level quality of 95 percent, water levels 14 percent, broken grains a maximum of 20 percent, and menir grains a maximum of 2 percent.

"The agency also regulates price rates, so that if there is grain and rice that is not in accordance with the quality determined by Bulog, it can still absorb it," he concluded.