Distribution Disruption Triggers Price Anomaly
The difference in the price trend of a number of commodities in the market and in the farm gate indicates that there has been a disruption in the distribution of commodities.
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Workers unload sacks of rice from Madiun, East Java, at Kebayoran Lama Market in South Jakarta, Monday (14/10/2019). The government is optimistic that it has sufficient rice stocks to meet demand for the next few months, despite the prolonged drought that has affected rice production this year.
JAKARTA, KOMPAS— The difference in the price trend of a number of commodities in the market and in the farm gate indicates that there has been a disruption in the distribution of commodities. The social restrictions imposed by the government to prevent the spread of the new coronavirus have affected the distribution system.
Rice prices in the market, for example, have tended to rise in the last three months. The average price of rice, according to the National Strategic Food Price Information Center, rose from Rp 11,800 (about 75 US cent) per kilogram in early January 2020 to Rp 11,900 per kg on Monday (6/4/2020). The relatively high increase in rice prices occurred in Jakarta, from Rp 12,750 per kg to Rp 13,500 per kg.