Rice value chain : a structuration theory approach

Abstract

The rice price in indonesia is determined on the open market, move naturally along the equilibrium law of supply and demand, but still BULOG intervenes through floor and ceiling prices to help promote some seasonal price stabilisation. One of bulog role together with the Central Statistical Office, is monitoring prices over many years. As Indonesia has a number of rice varieties available, the government task in controlling rice price fluctuations become more difficult. During harvesting period, there have been frequently oversupplies in rice market, and as the result, the farmer’s rice did not absorb and sold well in the market. This make the rice price much cheaper (Timmer, 2005) at the farm rice price level. Thus, it is indicated that the rice price is fluctuating start at farmer level to end consumer.