Sunday, January 9, 2011

Indonesia Will Eliminate Tariffs on Imports of Wheat

farmIndonesia will eliminate tariffs on imports of wheat, soybeans and cattle feed, said on Friday by the chief minister of economy, in an attempt to improve household food supply and forestall possible protests over the escalating prices. As it is known, Indonesia is on of the developing country in South East Asia that has so many resources of fiber food.

“The measure will take effect next week,” said Hatta Rajasa in a press conference after the Cabinet met this week to discuss the stability of food prices. The official said he had not decided on the elimination of tariffs on sugar.

Indonesia, the largest economy in Southeast Asia depends on imports of sugar, soybeans and wheat, and sometimes the imports of rice and corn. Protests over food prices are considered as a factor behind the fall of Suharto in 1998. Rising food costs drove annual inflation to seven percent in December, the highest level in 20 months.

The Organization of the United Nations Food and Agriculture (FAO) said on Wednesday that food prices rose to a record last month, which exceeded the levels in 2008 generated a series of raids in several countries . The government expects food prices they yield local harvest begins in February.

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