In order to prove aid to the local farmers the Indonesia Government is providing aid to the farmers raising the prices for their crop, said the Indonesian Agriculture Minister Amran Sulaiman.
The government is planning to increase the prices of unhulled rice with a view to increase the farmer’s income at the harvest time when an increase in supply pushes down prices.
Sulaiman did not disclosed anything about by how much they will increase the rice price and when. The harvest season begins between March and April.
BULOG, a state -run Indonesian Bureau of Logistics purchased unhulled rice from farmers at Rp 3,300(25 cents) per kilogram in February, which after shortage of supply rises to 13,000 per Kg at retailer-consumer level.
Amran said that “It would be better if BULOG purchase both un-hulled and hulled rice at higher prices from farmers and give to consumers at lower prices.