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El Nino Peaking, the Government was asked to anticipate Rice Price Increase

El Nino is predicted to have an impact at least until October. The Central Statistics Agency (BPS) asked relevant agencies to anticipate the rising price of rice.

 

Deputy of Distribution and Service Statistics BPS Sasmito Hadi Wibowo said, it is caused because the price of grain and rice last August has increased. This indication can be used as the calculation for the government to intervene, in addition to the availability of supply in Bulog warehouses.

 

"I think the September inflation is not much different from August. But perhaps the rice (to be anticipated), because grain rose 3.4 percent in August. So maybe rice must be wary, besides other products, "said Sasmito after exposure to inflation BPS, Jakarta.

 

BPS announced an increase in grain prices in August 2015 compared to the previous month. BPS recorded that the average price of dry grain harvest (GKP) at farm level rose 3.4 percent compared to July 2015, or month to month (mtm), be at the level of IDR 4,594.72 per kilogram. Meanwhile, the average price of milled rice (GKG) at farm level mtm up 0.19 percent, to IDR 5,247.92 per kilogram.

 

"The potential rise there must be (the price of rice). At least an indicator of the price of grain now. Probably rose. How will the government anticipates the price of rice in September is not high as the increase in the price of grain in August, "said Sasmito.

 

To keep prices stable in september, Sasmito justify import options can be taken by the government. It is true, said Sasmito, there is still stock in Bulog about 2 million tons.

 

"If the market intervention, Bulog sell grain at a low price, then the stock goes down, yes possibility yes (need imports)," he said.

 

Further, he said, the BPS has a yardstick to provide input to the government to take a policy intervention. The indicator is the increase in rice prices over the past two months in a row up to three percent. It was seen from the price at the retail level.

 

"From us, when the price of rice a month or two months in a row have gone up three percent, so it should be intervened. If the increase is still below that, only a warning only, "added Sasmito. (Kompas)