Nesianetwork.id - 25/02/2024. In recent weeks, many netizens have complained about rising rice prices and limited purchases due to scarce stocks. There were allegations of shortages and rising prices of rice because a lot of it was bought up by politicians as social assistance ahead of the election, however, without intending to defend the government, the phenomenon of rising rice prices and reduced stocks in markets is part of a global domino effect, let's analyze it.
India, as one of the largest rice exporters in the world, has restricted its exports for three months. Not because demand is decreasing, in fact there is more demand. However, this policy must be taken to protect domestic needs and domestic production which is not as large as usual.
Apart from world needs which always increase as the number of people increases, the scarcity of stock in the world is influenced by several reasons, namely:
1. Natural conditions
The effects of global warming are real, the weather has become unpredictable in the last year, we have experienced high temperatures and long dry seasons. This has a big impact on agricultural products, especially rice, whose growth requires a stable water supply. For several areas that rely on rainwater for irrigation, it is clear that production will be disrupted and this phenomenon does not only occur in Indonesia but throughout the world.
Unfortunately, when the rainy season arrives with heavy rainfall, many rice fields are flooded. Just mention the Demak area which had a flash flood yesterday, you can estimate that many rice fields will fail to harvest.
2. Productive rice fields are narrowing
If you have noticed that in the last few years many rice fields have become houses and settlements, there are many factors why farmers are willing to sell their fields and become housing, but what is certain is that this land conversion will reduce the amount of paddy and rice production.
3. High production costs
To produce grain and rice, farmers now have to spend more capital on seeds, fertilizer, pesticides and the wages of agricultural laborers are increasing. Unfortunately, when the harvest season arrives, it is not uncommon for the government to open the taps for rice imports, causing the selling price of local farmers' grain to plummet and their profits to become thinner.
4. Geopolitical conditions and distribution chains
Conflicts and wars that occur in various countries have more or less affected production and distribution chains. Logistics costs are increasingly expensive and goods are increasingly difficult to supply.
That's all our post this time about Analysis of the Reasons Why Rice Prices Are Expensive and Rare in Indonesia, maybe you have other opinions, you can share them in the comments column. Hopefully it's useful see you.
Source: wirausahanesia.com
