Indonesia, Southeast Asia’s largest economy, is grappling with a severe disruption to its rice production due to the extreme El Nino phenomenon. This drought-induced shortage has led to a surge in rice prices, impacting small businesses and consumers alike. Yanto, an East Jakarta food stall owner who caters to the lower-income bracket, has seen a significant profit decline since August, unable to raise prices due to his customer base. Instead, he has opted to serve smaller portions of rice.
The El Nino phenomenon typically equates to less rainfall, which is problematic for this thirsty crop. This is particularly significant in Asia, where rice constitutes a staple food for the majority. Sutarto Alimoeso, Chairman of the Indonesian Rice Millers and Traders Association (Perpadi), acknowledged on Wednesday that this year’s grain…
