Implementing Agency:
Department For International Development (DFIDSEA)

Managing Institute:
Department For International Development (DFIDSEA)

Project Code: 150-500-012	Start Date: 01/01/1989	End Date: 31/10/1986
Commitment: £1,659,000	Status: Completed	Type of Funding: Bilateral - TC

Project Background:
The project's objectives relate to a number of sectoral intentions published within the Fourth Five-Year Development Plan for 1984/85 to 1988/89. The Plan continues to give priority to economic development with an emphasis upon agricultural self-sufficiency in food crops. It also clearly acknowledges the difficulty of maintaining this objective within an uncertain international economic environment.

The Plan allocates a substantial 12.74% of the total Development Budget to the Agricultural and Irrigation Sector, amounting to over Rp.10 billion, much of which is directed towards the development of transmigration and food production. An annual growth rate target of 4% was proposed for rice, leading to a target 28.6 million tons production by 1988.

Associated food and nutrition programmes are also relevant in that they aim to achieve an adequate and equitably distributed supply of food at reasonable and stable prices for producer and consumer. Diversification of diet and the development of associated food processing industries to improve nutritional patterns will be encouraged and more effort is to be directed to improved post-harvest technology.

Established in 1968, the National Grain Logistics Agency's (BULOG) remit has been:

* to stabilise producer prices of paddy and rice, and consumer prices of rice within specified bands, through market intervention operations.

* to ensure the constant availability of adequate supplies of rice; particularly for the "budget groups" (various categories of Government officials, institutions and the armed forces).

* to make available supplies for emergency relief to areas struck by natural and other disasters.

* to fulfill its mission at least cost.

This project extension addresses a number of the technical and economic implications of the above issues. Local budgetary support is assured and unlikely to be reduced in the foreseeable future.

Project Objectives:
The wider objectives of the project were: To improve the cost effectiveness of grain marketing in the public sector To assist an adequate and equitably distributed supply of good quality food at reasonable and stable prices for both producer and consumer To strengthen BULOG's mission in carrying out Government food policy particularly in the development of an effective national marketing system. The immediate objectives were: To strengthen BULOG's skills and capabilities in planning and policy analysis through the effective operation of an Integrated Planning Unit (IPU) To optimise the management of durable grain stocks with particular regard to upgraded pests and quality control (PQC) To ensure transfer of project expertise to BULOG staff and the sustainability of project operations following departure of TCO team,

Intended Outputs:
The identification of the priority technical factors affecting the quality and value of paddy and rice after harvest and during subsequent storage. The establishment of cost beneficial requirements, procedures and standards to avoid loss through improved operation PQC. The establishment of an integrate planning capability in policy in policy analysis resource planning. The development of an in-house capability for qauntitative analysis, effective resource allocation and improved provincial prognosis.