Food Minister confident of no rice imports in Indonesia next year

12-Nov-2024 04:07 PM

Indonesia's Food Minister is optimistic that the country will not need to import rice in 2025. Domestic rice production is expected to improve, and the current stock from earlier imports should help meet demand.

This year, rice production is forecasted to fall by 2.43% to 303.40 lakh tonnes due to delays in planting and unfavorable weather during harvest. The dry conditions of 2023, caused by El Nino, further impacted output.

Rice imports in Indonesia have risen significantly over the past two years, exceeding 30 lakh tonnes annually due to weaker domestic production.

However, the Food Minister suggests that imports next year will be minimal if domestic supply increases. Some of the rice from the 2024 import quota may also arrive in 2025 if shipments are delayed.

The Indonesian government plans to import around 36 lakh tonnes of rice this year and aims to expand the paddy-growing area from 7.5 to 10 lakh hectares to boost local production and move towards self-sufficiency. Regular international tenders have been issued for rice imports, with Indian exporters allowed to participate.

Indonesia's Food Minister is optimistic that the country will not need to import rice in 2025 due to expected improvements in domestic rice production.

This confidence stems from the anticipation of a better harvest next year, combined with existing stocks from prior imports. However, rice production in 2024 is projected to decline by 2.43% to 30.34 million tonnes due to delays in planting and unfavorable weather, including the impact of El Niño in 2023.

The reduction in domestic production has led to a surge in rice imports over the past two years, with imports exceeding 3 million tonnes annually. For 2024, Indonesia's government plans to import around 3.6 million tonnes of rice.

However, the Food Minister indicated that any imports next year would likely be minimal, depending on the performance of domestic production.

To address long-term rice self-sufficiency, Indonesia is expanding its paddy cultivation area from 750,000 hectares to 1 million hectares.

This initiative aims to boost production and reduce reliance on imports. Furthermore, Indonesia has been issuing international tenders for rice imports, with Indian exporters actively participating.

The government's goal is to balance the short-term need for imports with long-term domestic production growth.