Thursday, 5 November 2009

Indonesia says no plan to import rice in 2010

Indonesia has no plans to import rice in 2010 on expectations of a strong surplus, a senior official said on Thursday, dispelling market worries the country could join buyers next year and help boost prices.

"We don't have any plan to import next year," Mohammad Ismet, director for planning and business development at Indonesia's state procurement agency Bulog, told Reuters on the fringes of a rice conference in Cebu.

Indonesia was one of the top importers in 2007 when it purchased 1.3 million tonnes of rice.

It has managed to skip imports since last year after accumulating large surpluses, although traders say there is concern Southeast Asia's biggest economy could tap the market next year with weather conditions likely hitting output.

But Mohammad said an anticipated El Nino weather pattern is likely to be weak and won't impact production adversely.

"Indonesia not entering the import market will make the market more stable," he added.

The world's largest buyer, the Philippines, is kicking off its 2010 rice buying with a tender for 250,000 tonnes on Nov. 4 and traders say India, which is facing a sharp fall in production due to drought and floods, could follow suit.

That could see prices surge again in 2010, just two years after rates hit record levels due to export curbs by producers and big purchases by importers to secure supplies, sparking food riots across the world.

Mohammad said Indonesia was still considering to export part of its expected 3.5 million tonnes surplus next year.

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