Indonesia may import more rice to keep healthy stock levels

Indonesia may import more rice this year to keep healthy stock levels after earlier saying it has enough of the food staple to avoid overseas purchases, and is awaiting a trade ministry permit to determine volumes, government officials said.
State procurement agency Bulog has been permitted to import more rice this year, an official said, while the trade minister said the move is aimed at keeping rice stocks at a safe level and did not indicate a shortfall. "It was a government decision to allow Bulog to import rice," said the official from the procurement agency, who declined to named. "But until now, we have not gotten an import permit from the trade ministry.
"We still need to have an import permit from the trade ministry to realise the government decision." In late May, an Indonesian farm ministry official said the country saw higher paddy output of 70.6 million tonnes in 2011, leading to greater surplus and no need for further imports this year, as the world's third-largest rice grower strives for self-sufficiency.
Bulog CEO Sutarto Alimoeso told Reuters in response to the green-light given for more imports, that the agency is analysing whether to import rice from Vietnam. Last week, traders and a Vietnamese state-run newspaper said Indonesia has been in talks to import between 400,000 and 600,000 tonnes of rice from Vietnam to capitalise on lower prices, with shipment possible in the third quarter of this year. Traders had said high prices in Indonesia prompted the move to import more. Trade Minister Mari Pangestu later told Reuters Indonesia has not yet determined the rice import volume, as it is evaluating the situation and awaiting output numbers.
"Our rice stock is still enough now for our consumption. People do not need to worry," she added. "Import is also needed to anticipate the lowering stock at the end of the year when there is no crop to harvest." Last week, officials said Indonesia would produce more unmilled rice this year and see a bigger surplus of the grain as it expands production areas. Unmilled rice production was seen at 68.06 million tonnes in 2011, 2.4 percent higher than last year and up slightly from a forecast earlier this year for 67.31 million in 2011.
Pangestu also said Indonesia had a bilateral government-to-government agreement with Vietnam and Thailand in rice trade. Traders in Vietnam said last week that an Indonesian team had held talks with Vinafood 2, Vietnam's top rice exporter. Vietnamese rice prices have strengthened in the past week thanks to potential new demand as buyers shun away from increased prices in Thailand, traders said on Wednesday.
Domestic prices rising have also shelved a Vietnam Food Association plan to buy 1 million tonnes of milled grain for a three-month stockpile. The benchmark Thai 100 percent B grade white rice was at $545 per tonne, unchanged from Monday, and was up from last week's $525 a tonne.