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Published on April 5, 2008

"I agree to any policy to export rice. If our stocks are bigger than our need, why won't we export the staple?" Coordinating Minister for People's Welfare Aburizal Bakrie said last week in response to a plan by the Trade Ministry to issue a regulation on rice export.

The news agency reported that the government is planning to export rice, as this year the country is expected to experience a production surplus of more than 1.3 million tonnes.

It quoted director-general for food crops Sutarto Alimuso as saying that production in 2008 was estimated to reach 58.26 million tonnes of dry unhusked rice, or equivalent to about 33 million tonnes of rice.

If the population is 227.78 million with a per-capita rice consumption of 139.15 kilograms, the national need for rice would be about 31.68 million tonnes. So this year, there will be a rice surplus of about 1.3 million tonnes, excluding year-end leftover stocks in the warehouses of the National Logistics Agency and rice stored by consumers.

Indonesia traditionally faces rice shortages at the end of the year.

In the past, this has prompted the government to import rice, in order to stabilise soaring prices, often amid objections from farmers at home.

This year, however, instead of importing rice, the government will most likely export the commodity while trying to stabilise prices at home.

Trade Minister Mari Elka Pangestu said the government was drafting a regulation on exporting a number of food crops that are in surplus, including rice. Under the regulation, rice of a certain quality could be exported while the government is committed to securing stocks and stabilising prices in the domestic market.

The minister said the regulation on rice exports would be issued this month, when rice farmers are to conduct harvests.

"The main point is to guarantee rice stocks at home," she said.

The Nation