Indonesia to boost rice stockpile to avoid possible supply shortage

Source:Xinhua Published: 2013-4-6 10:16:03

The Indonesian government has planned to raise rice stockpile by up to 3 million tons this year as an effort to counter possible supply problem due to weather uncertainty, a minister said here on Friday.

Indonesian Coordinating Minister for Economy Hatta Rajasa said that currently the country's Logistic Agency has 2.2 million tons of rice stockpile and he was optimistic the amount could rise as planned.

"We have the highest stockpile since 2010. We now have 2.2 million tons, and with the addition of the stockpile in the coming months, the amount may keep rising," he said after a coordination meeting on food problem at his office on Friday evening.

Hatta asked relevant authorities to immediately conduct an intervention as long as the prices of staple food in the archipelagic country become unstable, given that the stockpile of rice was high enough nationwide.

"I said right now that should there be signals of the problems on supply distribution because of weather or seasonal problems ( please conduct an intervention), because the stockpile is high at the Logistic Agency's warehouses across the country," said Hatta.

Food price hike impacted the annual inflation in March which climbed to a two-year high of 5.9 percent, the National Statistic Bureau announced on April 1.

Chairman of the National Logistic Agency Soetarto Ali Muso confirmed that global weather uncertainty remained one of the main threats to the rice supply.

"The phenomenon of global weather uncertainty still become the threat, but the international production is undisturbed," he said after the coordinating meeting.

Indonesia has suffered from a rice supply shortage that pushed inflation up to 7.1 percent -- the highest in 21 months -- in January 2010.

Posted in: Asia-Pacific

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