Indonesia suspends rice, soybean duties to combat inflation

[Joanne98]

Source: Reuters

JAKARTA, Jan 28 (Reuters) - Indonesia will suspend import duties on rice, soybeans and wheat as part of government efforts to fight inflation and the president warned about the global risks posed by scarce resources, as countries grapple with escalating food costs.

Rising food prices across many parts of the world have been partly responsible for a number of protests in the last week and world leaders warned on Thursday they risked stoking more unrest and even war.

Indonesia surprised markets this week by buying nearly 5 times as much rice as expected, lifting regional prices, and the measure to remove rice duty until its own harvest in March could signal it may be looking to stockpile more of the staple.

Fresh demand from Indonesia and Bangladesh for rice is sending a worrying sign the region's main staple may join a price surge for other grains, worsening Asia's spiralling food inflation. Elsewhere, countries like Algeria are rushing to buy grains, a move seen heading off unrest over food prices as protests swept north Africa.



Read more: http://www.reuters.com/article/2011/01/28/indonesia-imports-scraps-idUSL3E7CS09Q20110128