THE policy of flexibility in prices for grain and rice issued by the National Food Agency (Bapanas) is appreciated. Because, this will ease the anxiety of farmers who are facing a fairly deep decline in grain prices.
“As a shortcut, it is indeed meaningful, helping farmers. Because now the grain is falling very deeply,” said Chairman of the Association of Indonesian Farmers’ Seed Banks and Technology (AB2TI) Dwi Andreas Santosa when contacted, Thursday (4/4).
From AB2TI’s records, he continued, the price of harvested dry unhulled rice (GKP) was at its peak in mid-February 2024. In East Java, for example, at that time the price of GKP for farmers was IDR 8,200 per kg and in West Java it reached IDR 8,500 per kg. kg.
Meanwhile, currently nationally, the average price of GKP for farmers is around IDR 4,300 per kg to IDR 5,700 per kg. In fact, a number of regions in Sumatra recorded the price of GKP at IDR 4,000 per kg of GKP.
“It (prices) continued to decline, so Bapanas took a shortcut policy to save the price of grain at the farmer level. By means of price flexibility,” said Dwi.
“If this can really be done, farmers can receive a GKP of IDR 6,000, which will actually make the farmers very grateful. Because the grain is continuing to fall, even though it’s not the peak harvest yet, it’s still 2-3 weeks away,” he continued.
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It is known that Bapanas has set the government purchasing price (HPP) for GKP at the farmer level to IDR 6,000 per kg from previously IDR 5,000 per kg. Then, the price of milled dry unhulled grain (GKG) at Perum Bulog’s warehouse, which was previously IDR 6,300 per kg, increased to IDR 7,400 per kg.
This step, even though it only applies temporarily, said Dwi, can give farmers a breather. Because, from the AB2TI survey, it is known that farmers’ production costs are currently IDR 5,966 per kg of GKP. “So when the price of grain is below IDR 6,000, farmers will definitely lose. Moreover, it continues to decline,” he said.
The Bapanas provisions are contained in the Decree of the Head of the National Food Agency of the Republic of Indonesia 167/2024 concerning Flexibility in Purchase Prices for Grain and Rice in the Context of Implementing Government Rice Reserves. The regulation will take effect from April 3 2024 to June 30 2024.
In addition to determining the HPP for grain, Bapanas also determined the HPP for rice in Perum Bulog’s warehouse with a minimum steam degree of 95%, moisture content of 14%, maximum broken grains of 20%, and maximum grains of 2% for groats, which was previously increased to IDR 9,950 per kg to IDR 11,000. per kg. (Mir/Z-7)
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