Jakarta. The National Food Agency (Bapanas) anticipates that the prolonged increase in rice prices will subside in the coming weeks, just in time with the upcoming Ramadan when food demand typically picks up growth.

Bapanas Head Arief Prasetyo Adi said on Wednesday this prediction is based on the decreasing prices of grains from farmers.

"I provide you with an update today that the price of dried grains from farmers’ harvests has sharply declined to Rp 7,100 [per kilogram] from Rp 8,600, indicating that rice prices will decrease significantly in the next two or three weeks," Arief said in Jakarta.

The retail price of rice is expected to return to its usual level of around Rp 14,000 per kilogram during Ramadan.

The current surge in rice prices, significantly contributing to inflation, has been driven by diminishing domestic rice production. The deficit in rice supplies has persisted for the last eight months. In January and February, domestic rice output was 2.8 million tons less than the national demand, he noted.

Alongside low supplies, the escalating prices of fertilizers have also played a role in the rice price hike. El Nino conditions are additionally blamed for harvest disruptions, leading to falling supplies.

To address the issue, the government is purchasing rice from other countries and providing food aid to 22 million low-income families, according to Arief.

Domestic rice output is anticipated to reach 3.5 million tons in March as farmers began harvesting grains in the past few weeks.

The Business Competition Supervisory Commission (KPPU) is investigating an alleged cartel that controls rice markets and conspiracy at the distribution level.

"Any indication of deliberate attempts to obstruct the supplies will be handled according to KPPU’s functions. Regarding possible law enforcement, we need to wait for the announcement of investigation results,” KPPU Commissioner Hilman Pujana said separately.