Unless the
management of BULOG change their strategy in buying farmer’s price, it was not
impossible that they would lose the battle against brokers in price
controlling. Big private rice milling centers could afford to buy all types of
rice from farmers at HPP price and further process the rice into quality as
demanded by the market.
If the big rice
millers dominated buyings of rice it was feared that they would have the power
in rice pricing at national level. This was disclosed by the Chairman of FKPI
Forum Suroso Natakusumah on Tuesday (5/5).
When the process of
buying by BULOG from farmers was not smooth, Bulog always reasoned that things
had changed, or planting season postponed. When the Government released
Presidential Decree (Inpres) on Government’s buying price (HPP) it turned out
that the price set by the Government was below market price. As the HPP price
announced after harvest, Perum BULOG was late in buying race from farmers than
private companies (who were price players).
Indicators that
Perum BULOG lost the race against private companies in buying farmer’s price
was apparent. By end of April 2015 realization of rice procurement at home by
BULOG was only less than 500,000 tons of the targeted 2.75 million tons to 3
million tons in 2015. And yet harvest chain was the criteria for Perum Bulog in
rice procurement at home when realization of rice procurement by BULOG was more
than 60% of target.
It seemed that BULOG
was outsmarted by companies in buying farmer’s price BULOG only started to do
rice buying after the HPP price was announced by the Government in March 2015;
and yet at that time some regions were already having harvest but BULOG had not
buy any rice from farmers. That momentum was grabbed by any private rice
traders to buy rice from farmers at abobe HPP price.
Chairman of KTNA of
the Banten province Oong Syahroni told the press that the new HPP was never
benefited by farmers, because price of rice was already above HPP i.e. GKP rice
around Rp.4,500.kg while in Inpres 5.2015 on Rice HPP was already stipulated at
Rp.3,700/kg. Private companies bought unhusked rice from farmers at acceptable
price by farmers, rice of 14% water content was also accepted by traders while
BULOG buy rice from farmers based on preconditions.
The Regency of Lebak
and Pandegalang was the rice barn of the Banten province. During chain harvest
in January-March 2015, farmers unhusked rice was rushed by rice mills like in
subang, Karawang, Sukabumi etc, as it was not harvest time yet in the
respective regions.
Vice chairman of
Perum Bulog Jakarta and Banten Fatah Yasin stated that of the targeted rice
buying 77,000 tons in 2015 until April 2015 only 8,500 tons in 2015 until April
2015 only 8,500 tons were realized. Operational zone of Perum BULOG Jakarta
included Banten and Jakarta, target of rice procurement in 2015 was 77,000
provided or Jakarta 7,000 tons and Banten 70,000 tons.
According to BULOG
executive Ahmad Sadikin, although harvested rice was low the gabah kept by
farmers still amounted 108,000 tons to be sold and was needed for planting. The
gabah stored by farmers was being awaited by Perum Bulog Lebak to be bought for
increasing rice procurement. When harvested rice in Lebak and Padeglang ran
out, and harvest was on in Karawang, Sugeng etc. rice traders from outside did
not do any buying in Lebak and Pandeglang. The resuilt was that price of rice
dropped, but still above HPP so Perum BULOG still could not buy.
Similar occurrence
was happening in Lampung when target of rice procurement by BULOG Lampung in
2015 was set at 90,000 tons but by end of April 2015 only 18,000 tons was
realized or 20%. According to BULOG official Usep Karyana, low realization of
rice procurement was due to delayed harvest which normally took place in
February 2015 postponed to March 2015. As harvest coincided with heavy rain,
water content in rice was more than 14% so farmer’s gabah were more absorbed by
the local market. The rice market in Lampung was very open so plenty of gabah
wee more absorbed by the local market. The rice market in Lampung was very open
so plenty of gabah were sent there.
Various effort would
be made to collect rice in 2015 among others to actively visit production
centers amd mills, to publise new HPP to BULOG partners and to scheme up
program of Integrated Farming involving local Governemnts, Perpadi, and KTNA,
seed traders, Fertilizer traders, banks, universities and the Police/Army.
Chairman of KTNA of
Lampung provinces Kaslan stated that the harvested rice in Lampung was running
out. During harvestime rice Traders from Palembang etc rushed for rice mills.
They buy rice at prices above HPP. Hundreds of trucks stood by the ricefields,
ready to transport rice to other regions. A condition as such made it difficult
for BULOG Lampung to compete against private traders. (SS)
Business New - May 8, 2015
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