NTT TRADE OFFICE TO INTERVENE IN RICE MARKETS

Kupang, Jan 23 (ANTARA) - East Nusa Tenggara (NTT)'s trade and industry office will soon intervene in local rice markets to stabilize the staple's' price which had edged up to Rp7,500 per kilogram .

"We will probably start our market operations next Tuesday, January 26, 2010 as we have already received the green light from Trade Minister Mari Elka Pangestu," the office's head, Simon Tokan, said here on Saturday.

Tokan said the trade minister had permitted the market operations after reading a letter from East Nusa Tenggara Governor Frans Lebu Raya reporting rice price hikes of 17 percent from normal price at markets in Kupang.

"According to existing rules, regional administrations must report price developments to the related ministries before conducting market operations," Tokan said.

He said rice traders at markets in Kupang had raised their prices after wholesale distributors had increased the prices of various types of rice.

Meanwhile, the Golkar Party Faction (FPG) at the House of Representatives (DPR) in Jakarta urged the government recently to conduct rice market operations to stabilize fluctuating rice prices in domestic markets.

The FPG also asked the government to take action against speculators who intentionally raised the rice prices in the domestic markets.

FPG spokesman Ade Komarudin said in a press statement in Jakarta recently that rice prices continued to edge up and reached Rp6,500 per kilogram, while the government had claimed that the national rice stock remained sufficient.

He said the speculators had intentionally raised the rice prices and therefore the government should take action against them.

Therefore he suggested that the government immediately conduct rice market operation by distributing State Logistic Agency (Bulog) rice stock to muffle the price hikes.

If the government failed to conduct market operation, Komarudin said rice prices would rise uncontrollably because harvest failure has been reported from various regions.