Malaysia

Bernas monopoly? Govt decision is right and final, says minister

Padiberas Nasional Bhd’s sole prerogative on rice imports to continue for another 10 years

Updated 4 years ago · Published on 19 Jul 2022 7:51PM

Bernas monopoly? Govt decision is right and final, says minister
Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee said the decision to allow the firm to have sole prerogative on the rice import industry until January 2031 is final. – Pixabay pic, July 19, 2022

by Amar Shah Mohsen

KUALA LUMPUR – The government will not backtrack on its decision to extend Padiberas Nasional Bhd’s (Bernas) concession as the single gatekeeper for rice imports for another 10 years, the Dewan Rakyat was told today. 

Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee said the decision to allow the firm to have sole prerogative on the rice import industry until January 2031 is final. 

“We will be seen as an irresponsible government if we sign a 10-year contract and decide now that we don’t want it anymore and cancel (the agreement). 

“The question of monopoly is one of the factors that was discussed in detail in the cabinet previously. However, in the end, the cabinet and government decided to extend Bernas’ contract.”

Kiandee was responding to a question from Khoo Poay Tiong (Kota Melaka-PH) on the Bernas monopoly and whether the government will consider allowing other companies to import rice. 

Earlier, Khoo had taken a dig at the government for persistently harping on its Keluarga Malaysia slogan when rice farmers earn a meagre fraction of the millions made in profit by Bernas each month.

According to Kiandee, the government’s move to give Bernas sole control on rice import for another 10 years – a decision made in November 2020 in the midst of the Covid-19 pandemic – has proven to be the right one. 

“Bernas was given the full responsibility to ensure any insufficient rice stock can be covered through import. As of today, we have no problem with rice stock, and one of the reasons is because of our decision to give a specific company to be sole importer. 

“The decision has been made, and today, I feel it has benefited us, that the decision we made was the correct one.”

Other than importing rice to ensure the national rice stockpile is maintained, Kiandee said among Bernas’ obligations include the distribution of padi price subsidy to farmers, managing Bumiputera rice millers scheme and acting as buyer of last resort at guaranteed prices.

Earlier, the minister had said that Malaysia currently has a rice stockpile that could last over seven months, dismissing the opposition’s claim that the stock is only sufficient for a year should a crisis strike. – The Vibes, July 19, 2022

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