Indonesia plans to import 1 million tons of rice from India as harvest delays

Indonesia is considering importing up to 1 million metric tons of rice from India in 2025 to safeguard its domestic supply amid delayed harvests. Coordinating Minister for Food Affairs, Zulkifli Hasan, stated this after an interministerial meeting on Tuesday, Indonesia Business Post reported. The proposed import is a response to anticipated low output in early 2025, driven by delays in the planting and harvesting season due to prolonged dry weather.

The Head of the National Food Agency, Arief Prasetyo Adi, explained the urgency, stating, 'We need an additional 1 million tons to get through February.' He noted that output between December and February is usually lower, exacerbating the shortfall.

Indonesia’s 2024 rice production is projected to fall by 2.43% from last year, reaching 30.34 million metric tons, according to the country's statistics bureau. This drop reflects the impact of delays in the planting and harvest season amid prolonged dry weather.

With an annual rice demand from Indonesia’s 280 million citizens, the country has already turned to international sources to fill the gap. Rice imports have increased significantly over the past two years, surpassing 3 million metric tons annually.

Indonesia is targeting imports of up to 3.6 million tons of rice this year. Meanwhile, the government also plans to create 3 million hectares of new rice fields in the next 3-4 years to achieve President Prabowo Subianto’s food self-sufficiency target.

Adding to the opportunity for increased trade, India has recently relaxed export restrictions. In response to a bumper harvest, India has removed the floor price for non-basmati rice shipments and exempted parboiled and husked (brown) rice from export duty, making Indian rice more competitive in the international market.

Recently, Indonesia's state procurement agency, Bulog, signalled an expanded sourcing strategy. Initially, Bulog’s tender to buy 340,000 metric tons of rice allowed supplies only from Thailand, Cambodia, Vietnam, or Pakistan. However, a notice sent to traders on Tuesday stated that Indian-origin rice can also be offered, indicating Indonesia’s openness to Indian rice in upcoming tenders.

Indonesia's national rice production has declined over the last five years. In addition to crop failure due to pest and disease attacks and natural disasters linked to climate change, including the El Niño phenomenon, the decline has been further prompted by shrinking agricultural land."