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IPB: National Rice Reserve Ideally Four Million Tons

Agricultural experts Institut Pertanian Bogor (IPB) Dwi Andreas Santosa, said the government should increase the national rice reserve up to four million tonnes to anticipate the impact of the El Nino drought.

 

 

"The ideal of government rice reserves as much as 4 to 4.5 million tonnes. However, the rate of 2 to 2.5 million tons of it is tolerable for the government to intervene in the market," said Dwi.

 

 

According to him, the shocks could be muted if there is government rice reserves. "That's important," he said.

 

As we know, the government has allocated IDR 3.5 trillion to anticipate the effects of drought. This fund consists of Rp3.5 trillion to IDR 1.5 trillion in additional government rice reserves (CBP) and IDR 2 trillion to fund food reserves.

 

 

Rice reserves Logistisk Agency (Bulog) at this time, only about 1.5 million tons. The Government plans to increase reserves to 2.5 million tonnes of rice, in order to anticipate El Nino and food readiness for 2016. "The government must have money in anticipation of drought, because we are faced with a serious drought," said Dwi.

 

He said rice reserve is required by the government. It is intended that the government can conduct market operations if there are price shocks. (Viva.co.id)