Indonesia's rice support price expected to be raised by 10%

According to Indonesian officials, Indonesia will raise the rice support price by 10% to ease the impact of rising fertilizer prices. As the government will sharply cut fertilizer subsidies next year, fertilizer prices may rise by about 40%. Edy Putra Irawadi, deputy director of Indonesia's Coordinating Ministry for Economic Affairs, said urea prices will increase the most, estimated at up to 50%, because the government will cut the 2010 fertilizer subsidy from 17.5 trillion Indonesian rupiah this year to 11.3 trillion Indonesian rupiah. Indonesian Agriculture Minister Suswono said that to offset the rise in fertilizer prices, the state logistics agency Bulog will raise the rice purchase price from 4,400 Indonesian rupiah/kg to 4,840 Indonesian rupiah. This will help small rice farmers continue to profit.