Rice production likely to decline in Indonesia during June-July

10-Jun-2024 04:05 PM

Jakarta. Indonesia's government food agency says domestic rice production will be lower in June-July during the current year as compared to last year as the crop cycle was delayed due to less rainfall last year.

According to data released by the agency, rice production is likely to decline from 27.90 lakh tonnes to 20.10 lakh tonnes in June and from 24.80 lakh tonnes to 21.50 lakh tonnes in July as compared to last year.

The Indonesian government has allocated a total quota of 36 lakh tonnes of rice imports for the current year, out of which about 12 lakh tonnes of rice had been imported by the government food agency - Bulog till April 2024. Most rice is being imported from Vietnam.

Total rice exports from Vietnam in May jumped 35.3 percent to a high of 9.80 lakh tonnes, which is much higher than the normal monthly exports of 6-7 lakh tonnes.

In Indonesia, a total of 186.40 lakh tonnes of rice is estimated to be produced during the first seven months of the current year i.e.

January-July 2024, which is about 13 percent less than the production of the same period last year. During the same period, domestic consumption of rice is also expected to increase to 180 lakh tonnes.

At the end of July 2024, only 6 lakh tonnes of surplus stock of rice obtained from domestic sources will remain, so dependence on imports may increase.

Tender for rice import is being issued by Bulog every month. Due to the impact and outbreak of El Nino weather cycle, there was a huge lack of rain in Indonesia last year, due to which a decline in rice production is being seen.