Bernas rice import monopoly extended by more 10 years

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KOTA KINABALU: Senator Datuk Paul Kong has expressed disappointed with the response from the Ministry of Agriculture and Agro-based Industries to his proposal to revoke Bernas’ rice import monopoly.

Kong said Deputy Minister Datuk Wira Mohd Johari Baharum, in his winding up speech for the ministry in Senate last week, did not touch on his call to open up the rice import market.

“I am very disappointed with his answer which only informed the Senate that Bernas’ monopoly extension for another 10 years was approved by the cabinet on March 18, 2011. The extension was also backdated to January 11 2011,” Kong said.

He said Johari also told the Senate that the extension was based on Bernas’ fulfillment of all the social obligations stated in the privatization agreement made and it has in fact helped the government reduce its expenses.

On the issue of developing land in Sabah for rice cultivation, Johari said a commercial rice-based agricultural development has been implemented in Kota Belud and this project is the follow-up action on the proposed master plan for the district.

“The master plan involves an area of 10,000 hectares in Kota Belud and the first phase of the project started in 2009 which involved reorganizing the paddy plots according to commercial needs and improving the irrigation and drainage system, among others,”  he said.

The first phase also included construction of infrastructure in the 240-hectare ‘kugean’ area, improving water mains, repairing part of the drainage system in the Tempasuk Utara drainage scheme and utilizing the water in Kimo-Kimo retention area.

Indirectly, the project had resulted in improvements for existing 250-hectare paddy fields in Kesapang, 33 hectares in Tempasuk Utara and 330 hectares of idle land in Kimo-Kimo, Johari said.

Kong, when debating the Yang di-Pertuan Agong’s speech in Senate two days ago, pointed out that Sabah, despite having vast land that can be used for agriculture, still has to import rice to meet the local demand.

He said that about 70 per cent of rice supply in Sabah is imported as the state as fertile land is not developed.

The situation is serious and further exacerbated by the government’s action in giving the rice import monopoly to Bernas, he said.

Kong, who is also MCA Sabah deputy chief, is of the opinion that if Malaysia adopts an open policy on rice imports, Malaysians will benefit as the price of the staple food can then be reduced by at least 50 per cent.

Therefore, he urged the government to end the monopoly and issue licences to other companies so that there is a healthy competition in the import of rice.

“This will make the rakyat happier and I am confident that they will in turn give full support to the ruling Barisan Nasional (BN) government in the coming 13th general election,” he said.