Abundant Imports, Ahead Of The Disappearance Of Rice

Photo Illustration By Andry Winarko (VOI)

JAKARTA - Urban people who are getting used to shopping for products from franchise shops or stalls such as Alfamart and Indomart are surprised by the disappearance of rice supplies in various outlets. Several rice brands such as Sania, Kunci Gada, Platinum, which are usually available in 5 Kg pockets, are not visible. The modern retail management officer admitted that rice stocks since the quiet week of the 2024 presidential election contestation were empty.

Alfamart's public relations staff in the Jabotabek area, Budi Santoso, admitted that the scarcity in Alfamart outlets occurred due to reduced supply from suppliers. According to him, the scarcity occurred in the past week. The premium types of rice that experienced scarcity in franchise stalls.

"There is rice but the amount is limited so that the distribution is uneven. Currently, Alfamart distributes the amount of goods that can be obtained. So that purchases are only limited," he told VOI, Friday, February 16.

The scarcity of rice in modern retail stores began during the quiescent period of the 2024 election. GM Alfamart's Corporate Communication, Rani Wijaya in its release to VOI, Friday (16/2) said the stock of local premium rice packaging 5 kg at Alfamart outlets could not meet demand. This is directly proportional to the stock of rice in the warehouse owned.

Based on VOI observations since the quiescent period of the General Election until February 19, rice vacancies at franchise stalls, both Alfamart and Indomart, occurred in several areas in Jabodetabek. These areas include Depok, Jagakarsa, Bojong Gede, Sentul, Kelapa Gading, Cibubur, Cipondoh and Pinang. Especially in Jagakarsa, several retail shops selling rice can be seen as empty buckets that are usually accommodated.

According to rice traders on Jalan Raya Srengseng Sawah, the scarcity of rice occurred two months before the election, apart from the rare price also starting to feel an increase, the price of MBW bulk rice, which is usually sold for Rp. 12,000/Kg, is now sold for Rp. 15,000/Kg. There is an increase in prices of around three thousand in each kilogram. Although the price has been increased, rice sales have not benefited at all. This is because the purchase capital is already high from the distributor, sellers must combine it with other product merchandise, such as basic necessities.

"Think like a cross subsidy, if you can't make a profit from rice, you can make a profit from selling groceries," said the merchant woman.

The same condition was acknowledged by a rice seller named Farhan around Lenteng Agung Street, South Jakarta. Farhan said that he had felt the scarcity of rice since 1 month ago and the same thing happened at the Cipinang Main Market, East Jakarta. "The impact of this scarcity is that the price of rice is so high that it does not match the usual selling price," he told VOI, Saturday, February 17. The man who claims to be from West Sumatra sells Jeruk's usually stamped rice for Rp120-130 thousand/10Kg, currently has to sell for Rp150 thousand/10 kg.

Rice Stock In Menipis Retail Warehouse

Regarding the scarcity and recent soaring price of rice, IPB Professor of Agriculture, Dwi Andreas Santoso, explained that the scarcity of rice supply, especially those that are premium in modern retail such as Alfamart and Indomart, occurs because the stock of rice in their warehouses is running low. This is due to rice suppliers from large mills that produce premium rice to supply limited modern retail.

Andreas explained that the empty supply of premium rice had occurred since last August, where the price of harvested dry grain jumped at the price of Rp6,272/Kg at the farmer level. The high price caused many large mills to stop production, while the selling price of rice was limited by HET (Highest Retail Price) of Rp13,900 for zone 1. With the high price of unhulled rice while prices were also limited by HET, many entrepreneurs chose to stop producing premium rice.

"As a result, the supply of premium rice to modern retailers has decreased. They only release existing stocks, so that the ability to sell premium rice in modern retail is limited," he told VOI, Saturday, February 17.

According to Andreas, in October the price of rice had actually started to stabilize, ranging from Rp. 14,500/Kg to December ranging from Rp. 14,600/Kg. However, suddenly the price has soared, now it has reached a price of Rp. 15,000/Kg. "The price of dry unhulled rice at the farmer level in September-October has also begun to fall to Rp. 7,800, but in January 2024 it has soared again and is the highest at this time," he said. Andreas said there was a price spike, due to miscommunication by the government so far, "We have repeatedly heard the government inform, that in January we will have a rice deficit of 2.8 million tons, this statement sparked panic among traders," he said.

In fact, according to Andreas, the government throughout 2023 decided to import 3.3 million tons of rice from various countries such as Thailand, Vietnam, Pakistan and Myanmar. Unmitigated rice that had entered until December 2023 was 2.7 million tons. Earlier this year, 500 thousand tons have also entered. Imports of 3.3 million tons of rice, according to Andreas, are the largest imports in the last 25 years.

So like anomalies, said Andreas, we were flooded with imported rice but the price of rice soared high. And in this week it was even difficult to get. So according to Andreas' calculation, basically our rice stock is sufficient even to face Ramadan and Eid al-Fitr. Because the rice held by producers and traders according to Andreas' calculation is around 4.7 tons and is very sufficient.

Scarcity Occurs Due To Disrupted Distribution Paths

Head of the DKI Jakarta Provincial Food and Agriculture Security Service (DKPP), Suharini Eliawati, said the scarcity of rice in a number of minimarket outlets located in the Jakarta area was due to climate change that hampered the harvest period. According to him, the harvest season is expected to fall in March 2024.

He said the new harvest season in March had an impact on reduced merchant activities due to the long holiday and the retail period of recharging rice stocks. "The entry of the main harvest period is not yet yet, it is estimated that it will be next month, resulting in an imbalance between supply and demand," Suharini told VOI, Tuesday, February 20.

Scarcity of rice in minimarkets also occurred in 2 sub-districts in Tangerang City. The first is in Cipondoh District and the second is in Pinang District. However, the scarcity of rice in traditional markets in Tangerang City did not occur.

Acting (Pj) Mayor of Tangerang, Nurdin emphasized that the scarcity of rice in Tangerang City certainly did not occur in traditional markets. He also answered that he is currently trying to distribute rice with a cargo of 5 kg at prices below the market.

"Based on data from the Food Security Service (DKP), the Tangerang City Government is trying to cut the distribution route so that it is not too long. The long distribution path is very possible for prices to become high. We are trying to buy rice prices with a cargo of 5 kg at a price of Rp. 50 thousand," he said.

Nurdin said to suppress community anxiety in Tangerang City regarding the scarcity of rice in various regions of the archipelago, his party was aggressively realizing the cheap food movement (GPM). According to Nurdin, the cheap food movement is a form of cooperation between the city government and Bulog. He added that this cheap food movement was carried out simultaneously in 104 urban villages in Tangerang City.

"We will hold a bazaar simultaneously by collaborating with BULOG to realize the cheap food movement (GPM). This activity will be held simultaneously in 104 Kelurahan in Tangerang City," he told VOI, Tuesday, February 20.

Rice Inspection At Cipinang Main Market

On the other hand, the Corporate Secretary of Perum Bulog, Awaludin Iqbal, who also confirmed the same matter regarding the scarcity of rice, only conveyed the broadcast of Perum Bulog dated February 15 which basically conveyed the news about the scarcity of rice heard by President Joko Widodo. And on that date, the president was pleased to check the condition of rice supply at the Cipinang Rice Main Market, East Jakarta and see firsthand the availability of government rice reserves channeled in the Food Supply and Price Stabilization (SPHP) program.

The President on that occasion said, "I came to the Cipinang Main Market to ensure that the rice stock here exists because from here it is distributed to retail, to supermarkets, to the regions, from Cipinang Main Market. So I want to make sure the rice here is available, available, has sufficient amount, and I see abundant," said President Jokowi as written in the press release.

The President on that occasion said that the price of rice above the current normal price was due to the absence of yields. In addition, the distribution line is also disrupted by floods in a number of areas such as Demak and Grobogan.

The President denied the assumption that the increase in rice prices was triggered by the provision of food assistance from the government. According to the President, the provision of food assistance to the community is actually part of the government's efforts to control rice prices by increasing supply in the community.