Indonesia to buy rice from Vietnam

06 October 1998

Indonesia to buy rice from Vietnam

INDONESIA has bought 300,000 tonnes of rice from Vietnam as part of a plan to cope with domestic food shortages.

The cost of the rice was $288.50 (£171.30) a tonne. The agreement follows a September purchase of 536,000 tonnes of rice in Indonesias first open international tender.

Indonesias domestic rice price has risen fourfold over the past year. Drought and poor harvests have cut supplies. Annual rice production in Indonesia is expected to fall 6.2% to 46.3 million tonnes. Shortages have already sparked riots in the country.

The Indonesian Government agreed to end its monopoly on rice importing under an aid deal with the International Monetary Fund.

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  Financial Times 06/10/98 page 36 (News Digest)