Since February 2018, the price of rice at the mill has decreased by 9%.

The average price of rice at the milling level has shown a downward trend with the arrival of this year's main rice harvest. Data from the Central Bureau of Statistics shows that the price of low-quality rice at the mill in July 2018 decreased by 9.74% to Rp 9,014.56/kg compared to Rp 9,987.1/kg in February. Similarly, the price of medium-quality rice fell by 9.96% to Rp 9,197.78/kg, and the price of premium-quality rice decreased by 8.3% to Rp 9,519.93/kg compared to the end of February.

The lack of integration in the rice trading system from upstream to downstream causes the price of this food commodity to often fluctuate in the market. For example, in February of this year, the average price of low-quality rice at the mill reached Rp 9,987.1/kg. Even premium-quality rice reached Rp 10,381/kg and was sold to consumers at prices above Rp 12,000/kg.

Uncertainty in market supply due to discrepancies in data between relevant agencies, a long rice distribution system making it prone to speculation, and disparities in domestic and international rice prices cause frequent price fluctuations. Therefore, it is necessary to improve the efficiency of agricultural activities and the rice trading system from upstream to downstream by shortening the distribution channels to prevent speculation as has occurred in the past.