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Indonesia Grain Imports to Subside after 2023/24 Record
10.12.2024 21:03 "Agro Perspectiva" (Kyiv) —
According to the report of the USDA Grain: World Markets and Trade (December 2024), Indonesia imported a record quantity of grains in 2023/241, up over 30 percent from the prior marketing year. In addition to the ongoing trends of a rising population and shifting diets, domestic production shortfalls due to delayed rainfall spurred a flurry of public and private sector purchases. However, with improved production prospects in 2024/25, imports are expected to decline. Indonesia is a consistent major importer of wheat, with no production but a growing preference for affordable wheat-based staples such as instant noodles. In 2023/24, imports of wheat were up 38 percent from the prior year to offset tight beginning stocks. Imports of wheat for 2024/25 are expected to subside. Thus far in the marketing year, fewer imports from primary supplier Australia are partially offset by stronger imports from Canada and the United States. While imports from Ukraine are large so far this marketing year, the pace is expected to slow, given its tight stocks. Indonesians consume more than three times as much rice as wheat, which the country typically supplies primarily with domestic production. However, with delayed seasonal rainfall, production fell in 2022/23 and 2023/24. Amid the urgency to secure staple food supplies during an election year, the state food logistics agency was authorized to import rice through numerous tenders in 2023 and 2024 to supplement supplies. While imports represented only about 10 percent of consumption in 2023/24, Indonesia rose from a minor importer to become the second-largest importer, accounting for 7 percent of global trade. The weather also delayed Indonesia’s corn harvest in 2023/24. With rising demand for feed and wet milling, Indonesia authorized additional corn imports, primarily sourced from Brazil and Argentina. For further details, see the Coarse Grains section of this report and the Indonesia November 2024 Grain and Feed Update. Looking ahead to 2024/25, with improved production prospects, grain imports are expected to decline from this year’s peak.
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