Indonesia hopeful rice prices to fall as supply improves

Indonesia’s food procurement company Bulog is optimistic rice prices will be under control ahead of the Islamic fasting month of Ramadan that starts in the second week of March as harvests improve supplies.
Prices for rice, the staple for most of Indonesia’s 270 million people, have soared more than 16% since last year as the El Nino weather phenomenon cut rainfall across large parts of Asia in 2023, reducing output and sparking food inflation pressure for some of the world’s most price-sensitive consumers.
Bulog Chief executive Bayu Krisnamurthi said, rice harvests have started in some areas with supplies starting to flow into some of the main rice markets in the country.
He added, on top of the harvests, Bulog has secured commitments of 1.2 million metric tons of rice for imports.