Reuters informed that addressing the farmers at a regional development planning meeting in Java, agricultural minister told that the government has rejected the proposal from Thailand to supply 1.5 million tons of rice at prices Rp 4000 per kilogram which are much lower than the local rice prices which stands at Rp 8000-12000 per kilogram.
He told the gathering that if the government accepted the Thai proposal than it could gain a profit of about Rp 6 millions, but still the government has decided to not accept to maintain its zero import policy.
He said that this year Indonesia government would not import rice and is keen to attain self sufficiency in rice production as well as raising the living standard of its farmers.
Also to maintain the prices stability he said that the government always has an eye over the rice stock to prevent stock deficiency.
Certain issues like damaged irrigation channels, inefficient distribution of supplies of seeds and fertilizers, proper farming tools and lack of agricultural extensions need to be addressed by the government to improve the rice production in major rice producing provinces in the country, said the agricultural minister. He added that the government is planning to provide 57,000 tons of fertilizers and seeds for about 5 million hectares of rice fields across the country.
USDA estimates Indonesia to produce around 36.5 million tons of rice, basis milled and import around 1.3 million tons in MY2014-15.For the year 2015, the country is expected to consume 39.2 million tons or rice.