EPU looks into role of Bernas
The Edge Daily (7/5/2008): The Economic Planning Unit (EPU) was directed two weeks ago to look into the effectiveness of Bernas in carrying out its duties, said Agriculture and Agro-Based Minister Datuk Mustapa Mohamed.
The ministry has also directed Bernas to almost double its distribution of Super Tempatan 15% (broken rice) (ST 15%) from 11,000 tonnes per month to 20,000 tonnes per month starting from today to cater to the increasing demand. Private millers have also been directed to increase their production of ST 15% by 10%.
Bernas, according to Mustapa, has the social obligation of ensuring the stability of the price of rice and maintaining adequate stockpiles.
“Bernas also has the social responsibility of buying padi at a minimum price and ensure financial aid reaches the farmers,” said Mustapa after the debate on an emergency motion on the rice price hike tabled by Salahuddin Ayub (Kubang Kerian-PAS) in parliament yesterday. “We will wait for the result of the report and will take the necessary actions.”
The opposition members of parliament (MPs) had taken Bernas to task and had asked the government to end its monopoly as the sole rice importer in the country.
On the significant increase in distribution of ST 15% from today, Mustapa told reporters at the parliament lobby that the demand for the particular type of rice increased because it was relatively cheaper.
“Previously, the demand for ST 15% amounted to only 10% (of total demand) from the market but now it has grown because it is cheaper compared to other types of rice,” he said.
Citing an example, he said that producers of bee hoon and hawkers have also switched from using broken rice because it cost RM2.20 per kg, up RM1 from RM1.20 per kg previously.
Mustapa assured consumers that the price control of ST 15% will remain and it will be sold between RM1.65 and RM1.80. He said the increase in rice prices is a global phenomenon and is not isolated to Malaysia. He also said that Malaysia’s rice price is currently cheaper as compared to neighbours such as Thailand and Vietnam.
The 5% broken rice is retailed at RM3.20 per kg in Malaysia, while it is sold at RM3.60 and RM3.80 per kg respectively in those countries.
According to Mustapa, Malaysia has a rice stockpile of 550,000 tonnes which can last the country for three months. Out of this, Bernas keeps stock of 92,000 tonnes of rice as a national stockpile while the rest is padi that can be milled within hours and trading stocks in storage.
“There is no issue on the stockpile,” he said, adding that the government would take action against those who smuggle rice out of the country.
Mustapha also said the current high price of paddy at RM1,050 per tonne has also put pressure on the prices of rice.
“We want to take care of the consumers’ interests and will come up with a strategic price for ST 15%. We will ensure the price remains reasonable. If the price of rice continues to rise, we can put a cap on ST 15%. Then, there is an element of subsidy for the government.
“We are looking at a few methods. Our guiding principles are the interest of the lower income consumers and farmers because it may involve high subsidy cost,” he said, adding that no decision had been made.
Mustapha also said that his ministry would be spending an additional RM803 million over and above the RM93 million already spent to boost the output of the next crop.
The money would be spent on the purchase of fertilisers, pesticides and machinery to aid farmers. The ministry is expected to spend RM146 million on fertilisers. Each crop takes about four months to cultivate and the cycle differs from state to state. There are 140,000 paddy farmers in the country.
“We have asked the Treasury exemption for direct negotiations to purchase these items instead of calling for tenders,” he said. Mustapha also said that RM4 billion has been set aside recently for food security, of which RM2.5 billion has been allocated to his ministry. Paddy production would use up to RM1.8 billion.
Asked on paddy land being converted into development, Mustapha said the ministry would look into the matter and might impose certain legislation to prevent it from being converted.
“About 3% to 4% of paddy fields have been turned into development. In Japan, they have legislation that prohibits the conversion of paddy land to other users. We are working on the details,’’ he said.
Related: Bernas to raise ST15 rice supply (Bernama 6/5/08)
The ministry has also directed Bernas to almost double its distribution of Super Tempatan 15% (broken rice) (ST 15%) from 11,000 tonnes per month to 20,000 tonnes per month starting from today to cater to the increasing demand. Private millers have also been directed to increase their production of ST 15% by 10%.
Bernas, according to Mustapa, has the social obligation of ensuring the stability of the price of rice and maintaining adequate stockpiles.
“Bernas also has the social responsibility of buying padi at a minimum price and ensure financial aid reaches the farmers,” said Mustapa after the debate on an emergency motion on the rice price hike tabled by Salahuddin Ayub (Kubang Kerian-PAS) in parliament yesterday. “We will wait for the result of the report and will take the necessary actions.”
The opposition members of parliament (MPs) had taken Bernas to task and had asked the government to end its monopoly as the sole rice importer in the country.
On the significant increase in distribution of ST 15% from today, Mustapa told reporters at the parliament lobby that the demand for the particular type of rice increased because it was relatively cheaper.
“Previously, the demand for ST 15% amounted to only 10% (of total demand) from the market but now it has grown because it is cheaper compared to other types of rice,” he said.
Citing an example, he said that producers of bee hoon and hawkers have also switched from using broken rice because it cost RM2.20 per kg, up RM1 from RM1.20 per kg previously.
Mustapa assured consumers that the price control of ST 15% will remain and it will be sold between RM1.65 and RM1.80. He said the increase in rice prices is a global phenomenon and is not isolated to Malaysia. He also said that Malaysia’s rice price is currently cheaper as compared to neighbours such as Thailand and Vietnam.
The 5% broken rice is retailed at RM3.20 per kg in Malaysia, while it is sold at RM3.60 and RM3.80 per kg respectively in those countries.
According to Mustapa, Malaysia has a rice stockpile of 550,000 tonnes which can last the country for three months. Out of this, Bernas keeps stock of 92,000 tonnes of rice as a national stockpile while the rest is padi that can be milled within hours and trading stocks in storage.
“There is no issue on the stockpile,” he said, adding that the government would take action against those who smuggle rice out of the country.
Mustapha also said the current high price of paddy at RM1,050 per tonne has also put pressure on the prices of rice.
“We want to take care of the consumers’ interests and will come up with a strategic price for ST 15%. We will ensure the price remains reasonable. If the price of rice continues to rise, we can put a cap on ST 15%. Then, there is an element of subsidy for the government.
“We are looking at a few methods. Our guiding principles are the interest of the lower income consumers and farmers because it may involve high subsidy cost,” he said, adding that no decision had been made.
Mustapha also said that his ministry would be spending an additional RM803 million over and above the RM93 million already spent to boost the output of the next crop.
The money would be spent on the purchase of fertilisers, pesticides and machinery to aid farmers. The ministry is expected to spend RM146 million on fertilisers. Each crop takes about four months to cultivate and the cycle differs from state to state. There are 140,000 paddy farmers in the country.
“We have asked the Treasury exemption for direct negotiations to purchase these items instead of calling for tenders,” he said. Mustapha also said that RM4 billion has been set aside recently for food security, of which RM2.5 billion has been allocated to his ministry. Paddy production would use up to RM1.8 billion.
Asked on paddy land being converted into development, Mustapha said the ministry would look into the matter and might impose certain legislation to prevent it from being converted.
“About 3% to 4% of paddy fields have been turned into development. In Japan, they have legislation that prohibits the conversion of paddy land to other users. We are working on the details,’’ he said.
Related: Bernas to raise ST15 rice supply (Bernama 6/5/08)
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