Environmental challenges due to COVID-19: Implications of altered distribution patterns and rice price dynamics in surplus and deficit areas of Indonesia

The effects of Covid-19 have disrupted staple food (rice) security, due to shifting distribution patterns, margins, and price dynamics. This study presents the effects of COVID-19 on rice distribution patterns and Margin of Trade and Freight (MTF); dynamics of rice prices in surplus and deficit areas in Indonesia. Using time series data on weekly rice prices, from January 2018 to December 2021, the National PIHPS source to answer the research objectives. Rice prices include prices at the traditional market level and at wholesale before and during COVID-19. Using descriptive analysis, MTF, CV and convergence test to answer the study objectives. The results of the study found that the general pattern of rice trade distribution experienced changes in the distribution chain and differed between surplus and deficit provinces. The dynamics of rice price fluctuations are weak and differ between surplus and deficit provinces at each market level. The government’s policy of celling price and floor price has helped stabilize rice prices. However, the government needs to build an early warning system related to the food security system. It is necessary to provide a real time food data presentation system to reduce panic.