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KUALA LUMPUR, MALAYSIA - INDONESIA revealed plans on Monday to set aside 10,000 square km for rice to boost output of the grain as countries around the region struggled to stock up on the food staple on fears of a global supply squeeze.
Indonesian Agriculture Minister Anton Apriyantono said the government would conduct a feasibility study for the programme, which could help soothe worries about rice supplies in countries such as Malaysia and the Philippines.
'We plan to have 1 million hectares (10,000 sq km) to be given for rice estates to cater for rice demand in Muslim countries,' Mr Apriyantono said.
'We have land, water and farmers in Indonesia but we need investors. I hope this programme will help all the Muslim countries, especially Malaysia.'
The Southeast Asian archipelago has been struggling to increase rice production, the main staple for its population of 226 million people, as it lacks good quality seeds, and faces intense competition for land and a shortage of fertiliser.
But Mr Apriyantono said unmilled rice output was forecast to rise 7 per cent in 2008 to 61 million tonnes on better yields and that there were no plans to import rice supplies.
'Actually this will lead to 65 million tonnes of milled rice,' he told reporters in the Malaysian capital. -- REUTERS
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