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During 2001-2005 national production fluctuated with relatively small magnitude ( ± 50 million ton). Howevwer, generally national production increased as much as 1% in average. Highest national production growth was reached during 2003-2004 with 3.7% growth and 2nd highest
production was during 2001-2002 with 2% growth. In 2005, BPS estimated that national paddy production was 53.01 million ton, equal to 34.5 million ton rice. If this estimation is correct, it means that production growth decreased as much as 2%. Compared to the world
production share is about 9%
Domestic consumption for paddy is not prioritized and usually converted to rice consumption. SUSENAS 1984 (national economy census) showed that per capita rice consumption was 106.55 kg while in 2002 per capita rice consumption was 100.72 kg and during 2003-2005
was 100 kg. SUSENAS data showed that there is declining tendency in rice both in household and non-household that may be caused by food diversivication. Decline in rice consumption is axpected to increase consumption in other food products such as meat, egg
fish, vitamin, mineral, etc. as substitutes to carbohydrate. This can be realized if people income increases.
Nationally, consumption volume of paddy and rice fluktuated during 2001-2005 and it has increasing tendency. In 2001 consumption was 46.3 million ton (equal to 28.1 million ton of rice) and became 46.8 milllion ton 2004. In 2005, domestic consumption declined
as much as 1.26% bigger than growth in 2001 and 2003 which was 1.02 % and 0.58 % respectively. In 2006, it was projected that domestic consumption will reach 47.1 million ton (equal to 28.6 million ton of rice). If this projection is true,
it means that growth in domestic consumption increases as much as 0.8 %. Increase in domestic consumption owes much to non-household consumption while due to food diversification household consumption has been decreasing. Paddy or rice is a food commodity that is managed by the government (administered price) as mentioned in National Constitution 1945 article number 33:"Branches of production that are important to the state and the welfare of many people will be
