Indonesia’s recent move to block imports of corn for feed mills will cause wholesale poultry and egg prices to rise at least 6 percent over the next month, the Indonesian Poultry Farmers Association said on Tuesday.s
Indonesia, which imports corn mainly from Argentina and Brazil, stopped issuing import permits for corn used in feed mills in July as it made a broader push for food self sufficiency.
Corn demand in Southeast Asia’s largest economy has grown in recent years amid rising wealth and higher poultry demand, and critics warn curbing imports could stoke concerns about inflation, which was at a higher-than-expected 7.6 percent in July.
“This policy has good intentions, but it was too sudden, without any preparation,” association chairman Hartono said.
“This three million tonnes of corn per year can provide jobs for so many people here,” he told Reuters, referring to the volume that had been slated for import this year. Corn traders had pushed up prices of the grain sold locally to breeders by 10 percent after news on import curbs, Hartono said. “Brokers are the ones who benefit from this situation.”
According to the Indonesian Feedmill Association, the country was expected to import around 430,000 tonnes of corn from July to August. Shipments are now being held up at ports including in North Sumatra, Banten and East Java, it said.