KUALA LUMPUR: The current monopoly by Padiberas Nasional Bhd (Bernas) as the national rice importer in the country is still relevant to address the current situation, said Agriculture and Food Security Datuk Seri Mohamad Sabu.
In his winding-up speech on the 2024 Supply Bill, Mohamad said Bernas' performance as the nation's main rice importer is continually monitored and assessed by the government through the key performance indicators (KPIs) established in the renewed concession agreement.
Compared to the previous concession agreement, Mohamad said the government has also made several improvements, including the requirement for Bernas to fulfil 10 social obligations worth RM3.2 billion on behalf of the government.
"In regards to the issue of Bernas as a single gatekeeper, the privatisation model of the rice importer involves cross-subsidy where import profits are used to fulfil the task and responsibilities assigned by the government.
"Following this, Bernas through the duration of the new concession agreement, is required to fulfil 10 social obligations worth RM3.2 billion, including various incentives and programmes throughout the value chain of the industry.
"Bernas has also agreed to share 30 per cent of the net profits it gained with 240,000 rice farmers nationwide," he said in Dewan Rakyat, today.
The concession agreement with Bernas began in 1996 and was scheduled to end in 2011. The concession had been extended twice, with the latest ending in 2031.
This means that the concession agreement would last for 35 years, with the third concession starting from Jan 11, 2021, until Jan 10, 2031, worth RM3.216 billion.
Meanwhile, in terms of the current status of the local rice stock, Mohamad said the total local rice stock as of Oct 24 is 832,182 metric tonnes.
Of the total, 250,000 metric tonnes comprised of the government's stockpile while another 582,182 metric tonnes are commercial stock, he said.
"This means that the stock is sufficient to meet the need for local rice for a period of four to five months."
