The Malaysian Insight

THE government must review its 10-year rice import concession extension given to Padiberas Nasional Bhd (Bernas) as the monopoly is choking competition in the rice industry, said Pakatan Harapan MPs in Parliament today.

“It will cause missed opportunities. The industry will be on the old notch for the next 10 years,” said the MPs, led by former deputy agriculture and food industries minister Sim Tze Tzin (Bayan Baru), along with Dr Azman Ismail (Kuala Kedah), Chan Ming Kai (Alor Setar) and Amin Ahmad (Kangar).

They called on the government to review the decision announced by the Ministry of Agriculture and Food Industries (Mafi) to retain Bernas as the single gatekeeper for rice imports till January 2031.

“One of the reasons the rice sector is less viable is due to the monopoly and dominance of Bernas in the value chain of the rice industry.

“We do not deny the contribution of Bernas in terms of ensuring the stability of supply and price of rice during the pandemic.

“The government can actually only extend the monopoly status for two to three years until the pandemic problem is resolved.”

The monopoly extension is causing other companies, such as manufacturers, wholesalers and downstream industries in the sector to lose out, they said.

“Eventually, many industry players had to close down including many manufacturers and bumiputera companies.

“The number of padi producers was 1,597 in 1981, but only 157 remained in 2015.”

Previously, the government extended Bernas’s concession in 2011 to manage the country’s rice supply for 10 years. The current concession will end in January next year.

The MPs said that when PH was in government, it had started the process of opening the monopoly of rice imports in stages to benefit the rice sector.

“The direction has been set in the PH manifesto. Government change has thwarted our plans.

“Unfortunately, the Perikatan Nasional government made decisions according to the old policy of the past.

“Therefore, the padi and rice sector has to wait another 10 years before any changes can be implemented.”

They added that, despite farmers receiving large subsidies (RM1.7 billion annually), the rice industry remained stuck because the majority of farmers were in the B40 category.

Young people have also shown disinterest in venturing into the sector, leaving it to the poor and elderly, they said. – December 10, 2020.