KUALA LUMPUR (Oct 18): The government should work towards lessening the domestic rice market’s overdependence on Padiberas Nasional Bhd (Bernas), the nation’s sole rice importer and paddy subsidy scheme payment manager, according to Julau Member of Parliament Datuk Larry Soon @ Larry Sng Wei Shien.

In view of the ongoing supply shortage of locally produced white rice plaguing the market, Soon suggested the government implement measures such as granting import permits to other qualified players to reduce the overdependence on Bernas.

“Bernas has failed to deliver its services, as it carelessly monopolised the industry and failed to pay its stakeholders,” he claimed.

Citing a Public Accounts Committee (PAC) report on the receipt of social obligation payments as part of the national rice industry management agreement, Soon noted that the report underlined that the Ministry of Agriculture and Food Security's 2021 key performance indicator (KPI) report on Bernas contradicted the company’s actual performance.

“Does this contradiction in findings show that there is a possibility that the ministry leans more towards protecting Bernas rather than the interests of the rakyat?” he suggested.

A check with the PAC’s report showed that of the RM4.06 million stated to have been provided by Bernas for farmers' machinery and equipment in the KPI report, only RM3.12 million had actually been provided in January to May 2022.

Meanwhile, Soon also noted that the PAC report stated that Bernas had yet to pay RM25 million of the RM37 million social obligation it is required to pay under the concession agreement.

The unpaid social obligation funds comprise RM5 million for a paddy information system development fund, and RM20 million for a national nutrient development fund.

Bernas’ concession agreement with the government was first inked for a 15-year period from Jan 12, 1996 to Jan 11, 2011, with a value of RM1.2 billion.

It was then extended for 10 years to Jan 10, 2021, with a value of RM2.86 billion, and subsequently again to Jan 10, 2031, with a value of RM3.22 billion.

It is worth noting that one of the social obligations, namely stabilising rice prices, which was included in the previous two concession agreements, was not included in the latest 2021 iteration.

The company’s 10 social obligations under the latest agreement include managing the country’s 290,000 metric tons of rice buffer stock, acting as the buyer of last resort for local rice supply, providing funds for paddy mechanisation and equipment supply, allocations for soil nutrient development (fertilisation), and large-scale paddy development.

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