The government attempted to stabilise prices by imposing sweeping controls on food trade and marketing, selling off its food stocks and providing BULOG with a favourable exchange rate at which to import large quantities of rice to meet the domestic shortfall. From mid-1997 to mid-1998, the government managed to keep domestic food prices at 50-60% of import parity levels. However, capital flight led to a shortage of foreign exchange and the depreciation of the rupiah, greatly increasing the fiscal costs of importation. Further, the difference between domestic and international prices led to large-scale smuggling of rice and other food goods out of the country.