The Malaysian Insight

THE distribution of RM60 million in funds by Padiberas Nasional Bhd (Bernas) is nothing new as it is part of a deal the company made with Putrajaya after its concession was extended for another 10 years, said the Malaysian Rice Farmers’ Association (Pesawah).

At a press conference after the cabinet meeting on December 5, Prime Minister Anwar Ibrahim said he had reprimanded Bernas owner Syed Mokhtar Al-Bukhary and told him to share the profits of the company’s rice import monopoly with the farmers.

According to Anwar, the tycoon agreed to contribute RM10 million before the end of this year and RM50 million next year. Pesawah noted that the contribution was part of the 10 obligations made by Bernas after its concession, which ended on January 10, 2021, was extended by 10 years by the Muhyiddin Yassin administration.

The renewed concession ends on January 10, 2031. There are some 150,000 padi farmers in the country. 

Pesawah chairman Mohd Fuad Yaacob said the Bernas contribution will help alleviate the farmers’ burden but it was not a solution to the problems they had been facing all these years. 

“The RM60 million is Bernas social responsibility but it has not been paid to the padi farmers yet.

“But we thank the prime minister for this as both his predecessors did not implement it. Definitely, it will reduce our burden.

“Nevertheless, we see this as a short-term solution and not a comprehensive and complete solution to the problems faced by padi farmers,” he told the Malaysian Insight.

Fuad said the new government should take the initiative to meet padi farmers and evaluate the effectiveness of the current subsidy system, such as those provided for fertiliser, seeds and pesticide. He noted that the farmers face all sorts of challenges, including inconsistent prices, even when a subsidy is provided by Putrajaya. 

“We have to find out why even after the subsidy (is implemented), the prices of fertiliser, seeds and pesticide were still cheaper in the open market. 

“If the subsidised products we buy from the government are still costlier than (they are in) the open market, they (the government) may as well give us the cash to buy in the open market,” he said.

 

He noted a big problem faced by farmers was the inclement weather brought about by global warming.

“Before, there were consistent and predictable dry and rainy seasons. But now the drastic change in weather patterns adds to the burden, and this is a new problem for farmers.

“The drastic change in weather has affected soil conditions and affected our yield. This is something we want the government to look at seriously,” he said. 

Among the 10 obligations Bernas has includes providing subsidies, help managing the milling of padi, and arrangements for distribution. 

Bernas was also tasked with providing a fund to help farmers mechanise and set up a disaster fund. Bernas was formed in 1996, and took over the role of the National Padi Board (LPN), which had operated since 1971.

In 1997, Bernas was listed on the Kuala Lumpur Stock Exchange and at one time the company stock was held by foreign investors before Syed Mokthar took over. Fuad said farmers want the revival of the old LPN so their interests are ensured and not left in the hands of a corporation.

Food Security and Sovereignty Forum coordinator Nurfitri Amir Muhammad said the Bernas payment was the conclusion to what had been agreed, but delivery had been delayed. 

“Farmers were in the dark on the terms of the agreement. Even the disaster fund, where farmers in Kedah, Perak and Johor have yet to receive any compensation for losses brought about by recent floods in those states. Either the fund is not in operation or lacks funds.”

Nurfitri hopes Bernas will engage farmers and explain how aid will be distributed to them.

“We don’t know if aid will be in kind or cash. Will it be used for infrastructure development or other specific programmes? We are in the dark,” he said. – December 11, 2022.