Indonesian Food Agency: Logistics and Production Issues Drive Up Rice Prices
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Editor
1 August 2024 09:53 WIB
TEMPO.CO, Jakarta - Rice prices have surged in the past six months. According to the National Food Agency (Bapanas), the average national price of medium-grade rice reached Rp15,540 per liter as of July 31, 2024, up from Rp14,550 at the beginning of the year.
Data from the National Strategic Food Price Information Center (PIHPSN) revealed that the average price of premium rice was Rp16,350 per liter as of July 31, 2024. This represents a slight decrease from the first quarter's RP16,410 per liter but a 3.2 percent month-on-month increase and a 21.3 percent year-on-year rise.
Yusra Egayanti, Director of Formulation of Food Safety and Quality Standards at Bapanas, attributed the rising rice prices to several factors. Primarily, she cited logistics issues that inflate market prices and a decline in rice production amidst growing demand.
To address this, she encouraged food diversification. She also highlighted the particularly high rice prices in eastern Indonesia. “Although corn and sago are staples in the eastern region, people have shifted to rice. We must increase production and food distribution there,” she said in Jakarta, Wednesday, July 31, 2024.
Premium rice prices in Papua have reached Rp18,400 per liter, according to PIHPSN data.
Yusra warned of additional challenges, including economic weakness due to geopolitical tensions and climate change. She emphasized the importance of reducing reliance on rice imports to avoid a food crisis.
“Even if we can import food during shortages, the current global situation, with many countries prioritizing their own food security, makes it uncertain where to source imports,” she underlined.
Citing the World Food Organization or FAO's prediction of a 70 percent increase in global food production needed by 2050 to feed a projected 9 billion people, Yusra stressed the urgent need for Indonesia to prioritize domestic food security.
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