26-2-2024 (JAKARTA) In response to dry weather conditions associated with the El Nino pattern, Indonesia has allocated an extra rice import quota of 1.6 million metric tons for 2024. This comes after the country witnessed near-record volumes of rice imports last year due to delayed harvests at home.
The latest import quota supplements the previously approved 2 million tons for 2024. The decision has been prompted by concerns that the January-March harvest will be lower than last year, primarily due to below-normal rainfall in Java, which is Indonesia’s primary rice-growing region.
A rice trader based in Singapore remarked, “Indonesian rice buying has been driving global prices higher, and this news adds further bullish momentum to the market.” Rice prices in Asia have been hovering near a 16-year high following India’s restrictions on rice exports as the world’s leading supplier.
Export rates for parboiled rice from India, a major hub, have reached record highs this week due to limited supplies and a slight improvement in demand. Meanwhile, prices in key export hubs such as Thailand and Vietnam are nearing their highest levels since 2008.
The anticipated decline in Indonesian rice output poses a risk of further tightening supplies, resulting in higher rice prices. During a weekly government meeting streamed live, Trade Ministry official Arif Sulistiyo stated that Indonesia’s January-March rice production is expected to be 2.82 million tons lower compared to the same period last year. The trade ministry is actively working to issue import permits for the additional allocation, according to Arif.
However, National Food Agency Chief Arief Prasetyo Adi informed reporters that the government is currently focused on implementing the previously approved 2 million tons rice import quota, while the additional quota would be utilized later if necessary.
In 2023, Indonesia, the largest economy in Southeast Asia, imported a total of 3.06 million tons of rice, coming close to a record volume. At the retail level, rice prices in Indonesia are surpassing the government-set cap due to concerns over supply shortages.
