Indonesia: Bulog Recommends Review Of Purchase Price

Indonesia's National Logistics Agency (Bulog) chief Mustafa Abubakar has suggested that the government’s rice purchasing price (HPP) is no longer in keeping with the production costs farmers have to bear following the fuel oil price hikes and hence should be reviewed at the earliest.

Abubakar said Indonesia had also had a hand in pushing down the rice price in the world market in the past few years. "The world market predicted that Indonesia would import at least one to two million tons of rice in 2008 but the prediction turned out to be wrong," he said.