AFX - Asia | October 13, 2003 Monday
The Industry and Trade Ministry is preparing a decree to ban rice imports during the next harvest season to prevent price distortion in the local market, Bisnis Indonesia reported citing Director General for International Trade Sudar SA.
He said the decree may be issued this month, but will take effect during the upcoming harvest season.
The report said the next rice harvest is expected to last from February to May, 2004, with the peak period to fall in March.
Sudar said the import ban will last from one or two months before until one or two months after the harvest.
Outside the harvest season, importers can still import rice, but the ministry will regulate import volume.
He said that to allow effective control, the ministry will also limit the number of ports to receive imported rice.
Analysts have said imported rice has played an important role in containing inflation so far this. During the first seven months of the year, Indonesia recorded deflation in food prices mainly attributable to a fall in rice prices.AFX - Asia:
