REPUBLIKA.CO.ID, JAKARTA -- The government has assigned State Logistic Agency (Bulog) to absorb three local key commodities, with two of them witnessing price decline at farmers' level. Trade Minister Enggartiasto Lukita stated that trade offices in some regions would monitor price fluctuation to assure that Bulog's uptake could stabilize the price at farmers' level.

"We hope that Bulog could absorb unhusked rice, onion, and corn. Trade offices would be tasked to monitor this," he noted at a working meeting here on Thursday.

A data of the Central Bureau of Statistic (BPS) showed that the price of unhusked rice has recorded an increase at farmer's level in January. Unhusked rice (GKP) price, on the average, has recorded an increase of 8.42 percent to Rp5,415 per kilogram compared to the previous month, while husked rice (GKG) price has reached Rp6,002 per kilogram, or an increase of 7.07 percent.

Meanwhile, Agriculture Minister Andi Amran Sulaiman remarked that Bulog is expected to absorb 2.2 million tons of rice during January to June period. "Bulog would have the flexibility to buy the commodity at 10 percent above the government purchasing price. Above that, it would be commercial," Amran noted.

Based on Bulog's data, the government¿s purchasing price of unhusked rice at farmer's level was set at Rp3,700 per kilogram, husked rice price was set at Rp4,650 per kilogram, and rice price was set at Rp7,300 per kilogram.

For onion, Bulog would buy the commodity at Rp15 thousand per kilogram, with the price at farmer's level set at Rp6 thousand to Rp8 thousand per kilogram, while the purchasing price of corn was set at Rp3,150 per kilogram.

Paddy planting area in 2017 had reached 16.4 million hectares, or an increase of 16.65 percent, according to a data of BPS. In January, husked rice production is expected to reach 4.5 million tons, or equal to 2.8 million tons of rice.

With national rice monthly consumption expected to reach 2.6 million tons, there should be a surplus of 329.3 thousand tons of rice in January.

The country's paddy production had recorded an increase since 2015, with production in 2014 reaching 70.84 million tons. It increased to 75.39 million tons in 2015, 79.35 million tons in 2016, and 81.38 million tons in 2017.

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