Gov't Confident Food Supplies Sufficient Ahead of Ramadan
Jakarta. The government is confident that food supplies will be sufficient ahead of the holy month of Ramadan and that the country can avoid the extreme spikes in prices that usually burden consumers during this time.
Agriculture Minister Amran Sulaiman said on Monday (27/03) that there was 1.9 million metric tons of rice in stock at state procurement agency Bulog, which would be enough for the next three months.
Bulog has also stockpiled 1,000 tons of shallots and 2,000 tons of garlic to supply the market during peak demand.
Amran said the government has now been able to stock 40,000 tons of beef per month, 25 percent above the usual demand during Ramadan.
"All of these preparations allow us to intervene as soon as prices go up," Amran said.
The World Bank has warned that pressure from rising food and energy prices could accelerate Indonesia's rate of inflation to 4.3 percent this year from 3 percent last year.
Indonesia's 203 million Muslims will begin to observe Ramadan on May 27, which marks the start of a month of fasting from dawn to dusk.
Despite the fasting, demand for food often increases during this time because people tend to cook more food than usual as they gather with family and friends at the end of the day to break the fast together. That also provides speculators with ample opportunity to stockpile supplies to take advantage of price hikes.
Trade Minister Enggartiasto Lukita said the ministry is aware of such practices, and that the government is ramping up storage facilities and distribution networks across the archipelago to stabilize prices.
The government currently has a million tons of cooking oil in stock, ready to be released into the market at any time to keep prices low, the minister said. That should be enough keep speculators from trying to manipulate the market, Enggartiasto said.
"We assure consumers and traders that the government is really serious about providing stock and controlling prices. We will stay tuned to involve provincial governments, districts and cities," the minister said.
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