Sunday, May 12, 2024

Government halts corn imports to support domestic production, stabilize prices

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In an effort to ensure adequate absorption, price stability and optimum corn production, the government has decided to stop corn imports in April 2024.

Arief Prasetyo Adi, Head of the National Food Agency (Bapanas) said the government has set out key measures such as prioritizing domestic production, especially ahead of the corn harvest.

“By stopping corn imports, it is hoped that the feed needs of breeders, especially independent breeders, can be met from local farmers’ harvests,” Arief said on Saturday, March 16, 2024.

In 2023, the State Logistics Agency (Bulog) has planned to import feed corn to help the needs of breeders who had difficulties in obtaining feed raw materials.

Arief said that the import policy aimed to stabilize livestock feed supplies, while citing that feed is a significant price-forming element, which can influence the price of chicken meat and chicken eggs at the downstream level.

“By stopping corn imports ahead of the main harvest, the government wants to ensure that the price of corn at the farmer level is maintained,” said Arief.

In terms of ensuring that corn prices remain safe at the farmer level, the government’s decision to stop corn imports is considered very measured and balanced.

On the other hand, BAPANAS ensures the commitment of Bulog and its stakeholders in absorbing domestically produced corn.

Halting corn import is expected to help ease the Ministry of Agriculture in coordinating farmers’ corn absorption. In the near future, the Ministry of Agriculture will immediately prepare data on harvest locations, corn farmers and corn farmer groups by name by address which can be linked to independent breeders, feed mills and non-feedmills  at harvest time.

“Moreover, there is a surplus between production and consumption, so we must be able to utilize positive progress like this optimally to maintain supply stability and corn prices both upstream and downstream,” Arief said.

Based on Statistics Indonesia (BPS) data, total corn production in the first four months of this year could reach 5.34 million tons,  some 500 thousand tons more than production in the same period of the previous year.

“What we need to pay attention to is that price fairness and balance can always be maintained at all levels and this is also a concern expressed by President Joko Widodo,” the Bapanas chief said.

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