Rice millers want govt to end Bernas’ rice monopoly

The Malay Rice Millers Association is against Bernas’ sole importer licence being renewed when it expires next year. (Bernama pic)

PETALING JAYA: The Malay Rice Millers Association (PPBMM) has urged the government to abolish the monopoly Padiberas Nasional Bhd (Bernas) has on rice supply in the country after its import licence expires in early 2021.

Its chairman, Tirmizi Yob, said if there are more players, it would lead to the healthy development of the rice industry.

“For other industries, they give the approved permits (AP) to everyone.

“As a rice producer, we do not get any privileges from the government. If the padi is not enough, damaged or is not of the required quality, the factory will face losses. The same goes for farmers.

“Many rice mills are being closed down due to losses, but the government does not seem to care at all,” he told FMT.

Tarmizi said Bernas will however not experience the same situation as the company can cover the losses incurred with its sole ownership of the AP.

“If more APs are given, companies like us have a better chance to survive,” he said.

Tarmizi said they had previously suggested to the government to open up 30% of rice quota to Bumiputera companies, but the discussions were suspended after the change of government earlier this year.

“I hope this new government is aware of the grievances of Bumiputera producers like us.

“The Bernas monopoly needs to be removed for greater competition,” he said.

Meanwhile, Padi Rescue, a coalition of NGOs representing rice farmers and wholesalers, agreed that the sole right to import rice given to Bernas should be abolished and the industry should be fully controlled by the National Paddy and Rice Board (LPN).

“Unlike other agricultural commodities such as chilli or vegetables, this industry must be managed by government agencies as rice is one of the controlled items,” Padi Rescue coordinator Nur Fitri Amir said.

Nur Fitri said private agencies such as Bernas must not be allowed to manage the rice industry as they face a conflict of interest as they were motivated by profit.

He said as long as the government maintains Bernas’ position as the sole importer, the target of 100% self-sufficiency level will not be achieved. - FMT