Rice insights

REPUBLIKA.CO.ID, JAKARTA — Indef attributes the dysfunction in rice trade as the primary cause of the surge in food inflation in July 2025. The increase in domestic rice prices occurred despite the global market experiencing a sharp correction due to a bumper harvest and the recovery of exports. Head of the Center of Food, Energy, and Sustainable Development (FESD) at Indef, Abra Talattov, stated that the dysfunction in rice trade and weak quality control exacerbate the instability of national food prices. “Rice is the main contributor to inflation with a contribution of 0.06 percent to the general inflation,” said Abra in the July 2025 Monthly Update titled “Vulnerable Food Market to Manipulation, Energy Subsidies at Risk of Inflation”, in Jakarta, Sunday (3/8/2025). According to Abra, the rice scandal reflects the weak control of the state over food distribution. As many as 79 percent of rice brands tested did not meet quality standards, leading to erosion of public trust and ...

REPUBLIKA.CO.ID, JAKARTA — The Institute for Development of Economics and Finance (Indef) assesses that the single rice price policy is not an answer to the systemic dysfunction of the food trade. The issue of rotten rice that surfaced in July 2025 is cited as a symptom of weak quality control and distribution, as well as the lack of institutional reform. “The rotten rice scandal is a bad portrayal of the food trade,” said Head of Center of Food, Energy, and Sustainable Development (FESD) Indef, Abra Talattov, in the July 2025 Monthly Update edition titled “Food Market Vulnerable to Manipulation, Energy Subsidy Vulnerable to Inflation,” on Sunday (3/8/2025), in Jakarta. Abra highlighted the results of the Ministry of Agriculture's test on 268 rice brands, where 212 of them (79 percent) violated quality standards, especially regarding broken rice content and inappropriate premium labeling. He stated that these practices cause consumer losses of up to Rp 99 trillion per year due to ...

Kang Yoo-jeong stated that the degree of openness of the South Korean agricultural and livestock products market to the U.S. has already reached 99.7%, and the remaining 0.3% will not be further opened, which is the consistent and clear stance of the South Korean side. She pointed out that the U.S. side may have misunderstandings regarding the situation, and there may be differences in understanding between the two sides on some detailed clauses. She added that while there may be adjustments to the acceptance or quarantine procedures for certain specific categories to improve customs clearance convenience, this does not mean an increase in the overall import quota. Regarding the question of whether the opening could be expanded by relaxing quarantine standards, Kang Yoo-jeong reiterated that there is still room for negotiation on individual items, but this will not expand the degree of market openness. The Presidential Office emphasized that although there is a certain "temperature difference" between the two sides regarding the explanation of the results of this round of economic and trade consultations, the South Korean side's statement is more accurate. The Director of the Presidential Office's Policy Office, Kim Yong-fan, also pointed out the day before that the two sides have reached a consensus on "not further opening the South Korean rice and beef markets." On July 31 local time, U.S. White House Press Secretary Caroline Lavitt said at a press conference that the U.S. and South Korea have decided to lower the rates of reciprocal tariffs and auto tariffs imposed by the U.S. on South Korea to 15%, and South Korea will open its market to U.S. products including cars and rice. U.S. President Trump also stated on the same day that South Korea will fully open its trade with the U.S. and agree to accept U.S. products including cars, trucks, and agricultural products. (End)