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Research Paper | Agricultural Economics | Indonesia | Volume 8 Issue 3, March 2019

The Government Policy Effects of Highest Retail Prices on Rice Inventories at Wholesalers and Retailers in Palembang City

Winda Dwi Wahyuni | Andy Mulyana ^[3] | Riswani ^[2]

Abstract: Food availability is one of the subsystems that must be fulfilled in order to strengthen household food security. The Government of Indonesia has established the Highest Retail Price Policy of medium and premium rices to protect majority of consumers as well as producers from price volatility. This study aims to determine differences in the availability of rice at the level of rice traders or sellers before and after the determination of the policy. This study was carried out in the city of Palembang, which is one of rice trading center cities with the existence many rice sellers, both wholesalers and retailers, and located in the center of South Sumatera Province. The sample consisted of 6 rice wholesalers selected using purposive sampling and 12 selected rice retailers using snowball sampling. The results showed that the inventory proportions of medium rice and premium rice at the level of wholesalers and retailers in Palembang City have changed after the determination of the highest retail price, that are the medium rice inventory tended to decrease, while the premium increased compared to the period of pre price determination.

Keywords: rice, highest retail price, inventory, trader

Edition: Volume 8 Issue 3, March 2019,

Pages: 1524 - 1528