Trade flow of rice commodity in Indonesia 2018

ABSTRACTION

The distribution pattern of commodity is currently suspected to be still problematic, it can be seen from the high price disparity between producer prices and consumer prices, and the availability of goods that are insufficient when needed especially in big cities. In addition, there is a lack of available alternative choices, a sense of satisfaction that is not evenly distributed between producers, trade business institutions (in the trade system), and consumers are also a problem in the distribution of goods.This publication presents the domestic trade flow of rice commodities in 34 provinces in Indonesia covering 266 districts / cities. By using the survey method in the sample producers and traders, it can be obtained the information about description for trade flow of rice commodity nationally and in each province. The survey results show that the distribution of rice from producers to consumers involves one to four trading business functions.The longest trade flow chain of rice from producers to consumers involves four trade business functions as intermediaries, namely distributors, agents, wholesalers, and retail traders. Overall, the main chain of rice trade distribution in Indonesia is through producers – distributor – retailers – consumers. The margin of trade and transportation (MPP) in trade rice commodities in Indonesia is 26,06 percent.
Keywords: flow, trade, rice, margins