Malaysia

Farmers fume as Nafas padi seed monopoly sends price soaring

Govt called on to allow open-market sales, review distribution rights granted to organisation

Updated 5 years ago · Published on 11 Mar 2021 9:00AM

Farmers fume as Nafas padi seed monopoly sends price soaring
Farmers demonstrating at Pinang Tunggal in Seberang Prai over the padi seed sales monopoly held by the National Farmers Organisation. – ARULLDAS SINNAPPAN/The Vibes pic, March 11, 2021

by Arulldas Sinnappan

BUTTERWORTH – The Agriculture and Food Industries Ministry’s move to give the National Farmers Organisation (Nafas) exclusive rights to distribute padi seeds in the country has caused consternation among farmers and activists.

The monopoly makes Nafas the sole distributor for the government’s Certified Padi Seed Incentive programme.

However, farmers have complained that this has made the seeds even more expensive, coupled with the lack of assurance of a return policy for bad seeds.

Malaysian Consumers Association Federation (Fomca) vice-president Datuk K. Koris Atan said the farmers’ unhappiness over the move means that the ministry should review its policy.

“Any decision or policy change must benefit the target group, and the government should not bulldoze its decision into being accepted by the farmers.

“Let the market forces decide on the ceiling price for padi seeds. If the government wants to help the farmers, then it should make the price lower compared to the ceiling price set by Nafas,” he said.

He urged the ministry to review its decision to appoint Nafas as the sole distributor of the seeds, and to allow farmers the option of procuring seedlings in the open market.

Yesterday, farmers at Pinang Tunggal in Seberang Prai showed their frustration with a demonstration, accusing the government of effectively extending a monopoly to Nafas when padi seeds should be allowed to be sold in the free market.

Ahmad Shukri Saad, 48, said the move would not bring any benefit to the farmers. In fact, they will have to fork out more money when they make large-quantity purchases.

“Before this, we used to buy the seedlings for a reasonable price – it was RM33 for a pack of 20kg – but now Nafas sells it for RM35. Imagine how much it will cost if we buy 100 to 200 bags,” he said.

He stressed that seeds will not grow if they are stored for two to three months.

“Problems will also arise when seedlings fail to grow, and the farmers will not know until later. The process, from the day you buy and sow the seeds, will take about two to three weeks.

“In the open market, shop owners are willing to take back the poor seeds and replace them,” he said.

Farmers are saying the quality of padi seeds sold by the National Farmers Organisation, which has distribution monopoly, will only be known after they are sown, which puts the farmers at risk of incurring losses. – Pixabay pic, March 11, 2021
Farmers are saying the quality of padi seeds sold by the National Farmers Organisation, which has distribution monopoly, will only be known after they are sown, which puts the farmers at risk of incurring losses. – Pixabay pic, March 11, 2021

Shukri, a third-generation padi farmer, said they have not been told whether Nafas will accept returns of poor seeds and make replacements. 

“If the government is serious about helping the farmers, they should sell seedlings for RM32 or RM33,” he said. “Nafas as a government agency should sell cheaper or at equal price like the shops.”

Ishak Mohd Hussain, 58, expressed concern that Nafas is selling bags of seeds with pesticides in fixed quantities, denying farmers the option of purchasing them based on their own requirements and capacities.

“There is no guarantee, and Nafas will only sell seeds and pesticides according to your (required) quota. One cannot buy more or less in quantity,” he added.

“The quality of the seeds will not be known immediately. It will only be known after the seeds are sown,” he said.

He stressed that it would be wiser to allow the competitive open market to determine seed prices and accessibility without Nafas’ monopoly.

With effect from the current padi planting season, Nafas has been appointed as the sole distributor under the Certified Padi Seed Incentive programme, purportedly to tackle the problems of seed quality and high prices, which have persisted for decades.

Deputy Agriculture and Food Industries Minister Datuk Che Abdullah Mat Nawi had on Monday claimed that there have been complaints by farmers about high seed prices due to their sales being dominated by certain quarters, even though the seeds are of poor quality.

He said the government is hopeful that the new system will solve the problems faced by the farmers, stressing that Nafas is a government entity with no personal interests, and as such, would be able to take on the responsibility effectively.

Nafas has been entrusted to handle the distribution of certified padi seeds through 145 centres in Peninsular Malaysia. – The Vibes, March 11, 2021

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