Indonesia Signs Accords on Thai, Vietnamese Rice Imports
Indonesia has signed preliminary agreements with Thailand and Vietnam, the world’s two largest rice suppliers, to import a total of 400,000 tons of rice via government-to-government deals, a senior official from its Ministry of Trade said on February 24.
The preliminary agreements on rice imports are part of the government’s previously announced intention to import up to 1.5 million tons of rice this year to stabilize prices.
“We will import 400,000 tons of rice via government-to-government deals and we have a Memorandum of Understanding with Vietnam and Thailand,” said Diah Maulida, director general of foreign trade at the ministry.
“But we may still look at rice imports from other countries such as India, Pakistan and China, because they (Thailand and Vietnam) may not have sufficient stocks,” she said.
In December the government announced 500,000 tons of rice imports for 2007, then last week said it would import 500,000 tons more, with an option to double this.
On February 20, the state logistics agency Bulog said it would hold an auction on March 5 to buy 100,000 tons of rice. Prices of the staple for 220 million Indonesians have been rising in recent months due to a supply shortage before the harvest season in March.
Rice imports are a sensitive issue in Indonesia and have in the past triggered protests in the countryside by farmers who fear imports could depress prices.
Plans for additional imports came after government stocks were released by Bulog to the market to ease rising prices and for the cheap rice program for the poor. (Riceonline)
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