DistantNews
Support us
🇮🇩 Indonesia /Economy & Trade

South Sumatra Investigates Shrinking Premium Rice Stocks in Palembang

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • South Sumatra officials are tracing reduced premium rice supplies across more than 600 modern retail outlets in Palembang, including at factories and mills.
  • Officials say the rice remains available, but in smaller quantities, so the situation does not yet constitute a shortage.
  • Bulog says high paddy prices, around 7,700 rupiah per kilogram, have pushed the estimated production cost of premium rice to about 16,000 rupiah per kilogram.

South Sumatra officials are tracing the shrinking supply of premium rice in Palembang, from retail warehouses back to the factories and mills that supply them. The investigation involves the provincial government, the Regional Inflation Control Team and South Sumatra police.

We have seen the availability of rice, especially premium rice. The stock has indeed decreased from its usual level because they supply more than 600 outlets.

— Edward CandraThe South Sumatra provincial secretary describes the reduced supply across the region’s modern retail network.

Edward Candra, the province’s secretary, said retailers serving more than 600 modern outlets had received significantly less rice than usual. “We have seen the availability of rice, especially premium rice. The stock has indeed decreased from its usual level because they supply more than 600 outlets,” he said.

The pressure appears beyond retail storage. The inflation-control team plans to inspect production facilities to determine why deliveries have fallen. Candra said other locations might also be experiencing limited supplies, based on information received by the authorities.

After this, the Regional Inflation Control Team will also inspect the factories directly. We will see what the problem is and why stocks are limited.

— Edward CandraCandra outlines the planned investigation into producers and mills.

He stressed that officials do not yet classify the situation as a shortage. Premium rice remains available in the market, but the volume has declined. To cushion consumers, the provincial government is encouraging additional supplies of Stabilization of Food Supply and Prices rice through retail depots and warehouses, as well as direct distribution to residents. It will also continue holding low-cost market operations and affordable food programs.

So far, the product is available, only in small quantities. Usually they bring in more, but now the amount has decreased.

— Edward CandraHe says the situation has not yet become a rice shortage.

The provincial government and Bank Indonesia are preparing balancing depots at several traditional markets. These sites will provide both SPHP and premium rice. Ihsan, the head of Bulog’s South Sumatra and Bangka Belitung regional office, linked the supply situation to high paddy prices. Paddy currently costs around 7,700 rupiah per kilogram, he said. Once production, packaging and other expenses are added, the cost of premium rice can reach about 16,000 rupiah per kilogram. Ihsan proposed managing paddy shipments out of South Sumatra according to local supply, reducing outward deliveries when stocks are tight and restoring distribution during the harvest season.

With paddy at 7,700 rupiah, and production, packaging and other costs still to be added, the capital cost can reach around 16,000 rupiah for premium rice.

— IhsanThe Bulog official explains how raw-material prices affect premium rice costs.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog