Agri Commodities

Indonesia To Import Rice Amid Low Reserves

Indonesia To Import Rice Amid Low Reserves

Located in Asia, Indonesia is a rice importing nation and the country features in the list of top ten rice importers of the world. For hundreds of Indonesians, rice serves as a staple food commodity and so the country every year imports huge volumes of rice to meet its domestic needs.

However, rice imports always attract some kind of uproar or the other in Indonesia. Along with being a staple food commodity, rice serves as a sort of political commodity in the country as well and many people see rice imports as a taboo and correspond it with country’s failure to achieve self-sufficiency, although there might not be any ground to believe so.

Even then, Indonesia imports rice to avert the risk of food crisis and even now, the Indonesian government have given the green nod to BULOG- the state owned food logistics firm with respect to rice imports. 

BULOG Gets The Nod For Rice Imports

Amid the floating risk of an imminent food crisis, Indonesian government has given the state owned food logistics firm-BULOG, the green light to go ahead with the rice imports. While the move is completely justified as it has been taken with a view to ensure that no unruly social and political unrest takes place over shortage of grain, this will be the first time since 2018 that Indonesia will import rice in huge volumes from the international rice market.

Low Rice Reserves Behind Indonesia’s Rice Import Decision

Indonesia’s state logistics agency-BULOG, holds only 5,03,000 tonnes of rice as of now as against the required sufficiency level of 1.1 million tonnes to 1.5 million tonnes. 

Further, it has to distribute 2,00,000 tonnes this month, which will further deplete the low rice reserves that BULOG has. 

Owing to these, the Indonesian government has allowed the imports of the staple despite being aware of people’s perspective on rice imports. 

BULOG has set a target to procure 1.2 million tonnes of rice by the end of the year. However, it is difficult to secure the volume with the domestic rice production and hence the country has to import rice to ensure adequate stocks for domestic consumption.

Commenting on the situation, Indonesia’s president Joko “Jokowi” Widodo said that there needs to be awareness with respect to the risk of food crisis since it has the potential to trigger social and political unrest. 

It is because of this that Indonesia has given its state food logistics firm, BULOG the license to go ahead with the Rice Imports.

The Bottom Line

Despite being located in a region that is considered to be the best for rice cultivation, Indonesia imports rice every year to meet its needs. Although rice imports are always seen as a deficiency by the government by the people of Indonesia, the country has to import rice to avoid food crisis and sky high price of the commodity in the domestic market.

On similar terms, Indonesia is looking to import rice and have given BULOG a green light in this regard as the reserves of rice with state owned logistics company stand low as of date.

If you are an importer, thinking to buy rice in bulk or an exporter thinking to supply bulk volumes of rice, then Tradologie.com is the right platform for you. Tradologie has 600,000+ verified buyers and over 70,000 suppliers of food and agro-commodities from 100+ countries and through the platform, you can connect and conduct trade with the relevant ones with ease.

To register as a seller, click here. To register as a buyer, click here.

To stay updated with the recent happenings of agro-trade industry, follow Tradologie.com across all social media channels.

You may also like
Gulfood 2022 Dubai
What can Indian Agri Business Gain from Gulfood 2022?
Top Health Benefits of Pulses which You Can Include in Your Diet

Leave Your Comment

Your Comment*

Your Name*
Your Webpage