Key Agreement: Indonesia’s Rice Imports from India

Indonesia has confirmed its intention to import 1 million tonnes of rice from India. This decision emerged during a high-level bilateral meeting between Indian Prime Minister Narendra Modi and Indonesian President Joko Widodo on November 18, held alongside the G-20 conference in Rio de Janeiro, Brazil.

Details of Indonesia’s Import Quota

The Indonesian Trade Minister revealed that the government has allocated a total rice import quota of 3.6 million tonnes for the current year.

• Initially, the import quota was set at 2 million tonnes, with no specific allocation from India.
• Following the quota revision to 3.6 million tonnes, 1 million tonnes were earmarked for India as part of the expanded import strategy.

This adjustment underscores Indonesia’s reliance on Indian rice to secure its domestic food supply.

India’s Capability to Fulfill the Rice Export Demand

India is ready to fulfill Indonesia’s rice import request. With ample rice stocks, fulfilling the 1 million tonne order poses no logistical hurdles. Recent decisions by the Indian government to lift export restrictions on all rice varieties have further bolstered India's competitiveness in the global market.

While Indonesia’s import strategy remains open to sourcing rice from any country offering competitive prices, the specific request for 1 million tonnes from India highlights the trust and strategic importance of the partnership between the two nations.

Streamlining the Import Process

To ensure timely deliveries, the Indonesian government plans to fast-track the import process. The state-owned agency Bulog can now directly manage additional rice imports from other countries if necessary. However, the 1 million tonnes from India will be directly handled at the government-to-government (G2G) level, ensuring efficiency and coordination.

Conclusion: A Strategic Partnership in Rice Trade

Indonesia’s decision to import 1 million tonnes of rice from India reflects a deepening economic partnership between the two nations. With India’s readiness to supply and Indonesia’s proactive import strategy, this agreement ensures stable rice supplies for Indonesia while reinforcing India’s position as a reliable global rice exporter.





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