Market Anomaly Causes High Rice Price: Agriculture Ministry
3 February 2016 20:46 WIB
TEMPO.CO, Jakarta - The Agriculture Ministry suspected an anomaly in the domestic food market as the rice price remained high despite a surplus in rice supplies, Agriculture Ministry’s head of data and information center Suwandi said.
According to Suwandi, the price in theory will be stable and reach equilibrium when supplies are sufficient. However, the fact in reality is the opposite.
Based on rice supplies data and monthly price at the consumer level over the last five years, a price anomaly had occurred. Monthly rice supplies fluctuated based on production seasons, while the rice price continued to soar.
"Rice supplies are not correlated with the price," Suwandi said in a press release in Jakarta on Wednesday, February 03, 2016.
Suwandi added that there could be issues with distribution, logistics system, commerce, market structure and behavior that might result in price disparity. Suwandi added that the price of dried unhulled rice was at Rp 3,700 (US$20 cents) per kilogram. Added with processing cost, the rice price should be Rp 6,359 (US$45 cents) per kilogram. However, the rice price at the consumer level is set at Rp 10,172 (US$75 cents) per kilogram.
MAWARDAH NUR HANIFIYANI
