By Esther Lee, Jose Barrock and Vasantha Ganesan / The Edge Malaysia
28 Sep 2023, 02:10 pm
This article first appeared in The Edge Malaysia Weekly on September 18, 2023 - September 24, 2023
THERE is a lot that is not known about the concession agreement the government signed with Padiberas Nasional Bhd (Bernas) when the latter took over the role of Lembaga Padi dan Beras Negara in January 1996 via a privatisation exercise.
For instance, a number of social obligations listed in the concession agreement seem very broad and general. News reports have it that some of these obligations have yet to be carried out, including the establishment of a disaster fund, the development of a paddy database and the supply of machinery.
In June this year, there was talk of Bernas sharing 30% of its profits from rice imports with local paddy farmers, said to be initiated by Prime Minister Datuk Seri Anwar Ibrahim. This came about after Bernas agreed to import an additional 150,000 tonnes of rice to ensure no disruption to its supply in the country.
Bernas’ concession as the country’s sole importer of rice was extended another 10 years to January 2031 by the federal government towards the end of 2020. This came about after the late Datuk Seri Salahuddin Ayub, who was agriculture minister under the Pakatan Harapan administration that collapsed in February that year, had sought to end Bernas’ monopoly of rice imports.
In a press conference announcing an end to Bernas’ concession in June 2018, Salahuddin reportedly said, “In the effort to protect the interests of local paddy farmers, we have identified the models used by other countries [for importing the staple], among them Indonesia, which has been successful in its approach in opening up the monopoly on rice.”