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Saturday, May 10, 2008

Opposition slams Bernas for not rising to the occasion

The Star (7/5/08): Padi Beras Nasional Bhd or Bernas came under fire from the Opposition for failing to maintain the price and supply of rice in the market.

In an emergency motion tabled by Salahuddin Ayob (PAS – Kubang Kerian), calls were made to break Bernas’ monopoly over the import and distribution of rice in the country.

Bernas was also accused of prioritising profits over the welfare of the people who were feeling the squeeze of rising prices of foodstuff.

In response to the criticisms, Agriculture and Agro-based Industry Minister Datuk Mustapa Mohamed said the Economic Planning Unit had been directed two weeks ago to study the effectiveness of Bernas.

“Bernas has also been given a written order yesterday (Monday) to immediately increase its rice supply of broken grains in the market from 11,000 tonnes per month to 15,000 tonnes.

“Private millers have also been told to put aside 10% of their production for this type of rice. We hope this will help to reduce the shortage of Super Tempatan 15 (with 15% content of broken grains) in the market,” he said.

Only the price of Super Tempatan 15 is being controlled by the Government.

Mustapa said the shortage was also due to the fact that some factories and industries were now shifting to the use of Super Tempatan 15 for the production of foodstuff like beehoon.

“Previously, only 10% of consumers use this while many prefer higher grade rice or that imported from Thailand. Now, around 20% to 25% of consumers are using it because other varieties of rice are more expensive,” he said.

Mustapa assured the MPs that there was enough stockpile of rice – at 550,000 tonnes – to last three months.

He said the inflation committee meeting on Monday night, which was chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi, had also decided on a few strategies and proposals to counter the rise, particularly for low-income consumers.

“I will submit these proposals for the Cabinet’s consideration on Friday and once these have been agreed on, I will announce them,” he said.

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