Indonesia curbs its rice exports

Indonesia has imposed controls over rice exports as Asian states battle food supply concerns which have been caused by soaring global prices.

The country, South East Asia's largest rice consumer, brought in the rules to stop farmers selling crops at export prices which were double local prices.

State agency Bulog can sell medium grade rice overseas only when national stocks are above three million tonnes.

Domestic prices will also have to be below a set government target price.

Rice is the staple food for the country's 226 million people.

Many analysts say global factors such as trading in commodity markets and biofuel production are pushing up prices of basic foods such as rice, particularly in the developing world.

The price of staple crops such as wheat, rice and corn have all risen, leading to an increase in overall food prices of 83% in the past three years, the World Bank has said.

Expanded production

The sharp rises have led to protests and unrest in many countries, including Egypt, Ivory Coast, Ethiopia, the Philippines and Indonesia.

Export restrictions are already in place in major rice producing countries such as India, China, Vietnam and Egypt.

The Philippines, a leading importer, remains concerned and has called for a regional meeting to discuss the issue.

Meanwhile Indonesia's rice production will be about two million tonnes higher than consumption this year after an expansion in the harvested area and improved yields.

But officials say that is no cause for complacency. The country is struggling to boost rice production because it lacks good quality seeds and faces competition for land.

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International Rice Research Institute
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