Indonesia’s state owned logistics agency BULOG has decided to purchase between 2.5 million tons to 2.75 million tons from farmer this year which is lower than its previous year target of 3.2 million tons.
The company aims to purchase the rice and to increase the rice stock in the country
Director of Public Services, BULOG Lely Pelitasari said that of the total volume half of the rice would be purchased from farmers during the March-June harvest season.
“We are hoping for a good crop this harvest and also to increase the local rice consumption”, she said
President Joko “Jokowi” Widodo on March 17 has issued presidential instructions deciding that the farmers selling price (HPP) this year would be Rp 7,300 (US$0.56) per kilogram for medium quality rice. This price is 10% higher than last year’s price.
In a previous released statement BULOG had expected this rise to be of 15% and their purchase target of 3.2 million tons.
Last year BULOG se cured 2.39 million tons from local farmers.