The National Logistics Agency (Bulog) has proposed to the government to increase the so-called government rice purchase price next year.
Agusdin Fariedh, Director of Public Affairs at Bulog, said that the higher purchase price is necessary for Bulog to be able to better absorb the rice production of farmers in a bid to increase national rice stock.
He said that Bulog expected the government to approve the new price proposal before the start of the rice harvest next year.
Bulog has faced difficulties in increasing rice purchase from farmers because the latter had often declined to sell their rice to the agency due to the relatively low government rice purchase price. On the other hand, Bulog could not freely increase its purchase price, otherwise the agency would be seen of violating the government regulation.
To help increase national stocks, Bulog has turned to import. (rei)
