March 20, 2024

Indonesia to halt corn imports as domestic harvest season begins

Indonesia announced a halt in corn imports as the country witnesses a surge in domestic production, with the onset of what officials anticipate to be a promising local harvest season, already contributing to price stabilisation, Reuters reported.

Statistics estimate a significant rise in corn output, reaching 5.34 million metric tonnes during the January-April harvest period, marking a 10.28% increase compared to the previous year.

Bulog, the food procurement firm, had been granted an import quota of 500,000 metric tonnes of corn for animal feed this year, in addition to the 500,000 tonnes allotted in the last quarter of 2023, with some shipments expected to arrive this year.

With the recent surge in domestic supply, authorities aim to prioritise purchases from local farmers, as called for by National Food Agency (NFA) deputy chief Andriko Noto Susanto during a government meeting broadcast online.

The impact on Bulog remains uncertain, as the company has not yet commented on the decision. Despite the increase in domestic output, the average price of corn for animal feed experienced a 3.6% decline compared to the previous week, although it remains above the government benchmark, according to NFA data.

Indonesia's Ministry of Trade has agreed to suspend imports considering the ongoing harvesting season, as stated by Bambang Wisnubroto, a director at the ministry, during the meeting. Wisnubroto emphasised the priority of domestic procurement for corn, provided that the quality meets the necessary specifications for the animal feed industry.

-      Reuters