The low domestic rice absorption has the potential to weaken the price stability function at the farmer or producer level, which in turn erodes the purchasing power and welfare of farmers. BPS noted that grain prices at the farmer level have continued to fall in the last four months, namely from Rp per kilogram of GKP (dry harvested grain) in January to Rp per kilogram in April. The decline is in line with the NTP (farmers' exchange rate), one of the indicators used to see farmers' purchasing power or welfare. Meanwhile, the results of the BPS survey on grain sales transactions in provinces during April 2019 showed that the average GKP price at the farmer level fell percent from the previous month (Rp), which is in stark contrast to the increase in prices of basic needs, such as shallots, garlic, red chilies, purebred chicken eggs, tomatoes, and bird's eye chilies. Therefore, in addition to increasing the grain purchase price, the government needs to increase distribution to boost rice absorption.
Kompas, May 3, 2019
Based on the passage, what is the consequence of the continued low or declining domestic rice absorption?