News

Will Asia starve? Indonesia faces food shortages

Grains, Cereal & Legumes
Indonesia
Sustainability & Environmental Impact
Market & Price Trends
Published Feb 29, 2024

Tridge summary

The 2023 El Niño weather event has led to decreased rainfall and grain production in Asia, causing a rise in inflation and making staple foods like rice unaffordable for many in Indonesia. To mitigate this, the government is selling food from reserves at subsidized prices. The situation could have political repercussions, similar to the Arab Spring in Egypt after a 2010 crop failure. Meanwhile, Russia, with its grain surplus, views Indonesia as a lucrative sales market.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

The El Niño weather phenomenon has led to lower rainfall across Asia in 2023, reducing grain production and causing inflation to soar. As a result, traditional food products have become inaccessible to tens of millions of people. For example, the price of rice, a staple food for most of Indonesia's 270 million people, has risen more than 16% since last year. The country's Ministry of Agriculture announced a deficit of 1.63 million tons in January and 1.15 million in February. The government typically sells food from government reserves at subsidized prices when prices rise. This is still the case today. Since the beginning of the year, Bulog has distributed more than 300 thousand tons of rice from government stocks to hundreds of markets in Indonesia. Prices for “state rice” are limited to 10.6 thousand rupees (67.8 US cents) per kilogram. On the open market the price today is 14.3 thousand. And this difference is critical for the poor. Bulog has limited sales to 10kg per customer ...
Source: Rosng
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