KUALA LUMPUR – Agriculture and Food Security Minister Datuk Seri Mohamad Sabu (Kota Raja-PH) has brushed aside speculation connecting the price hikes in imported rice to Bernas’ monopoly.
Instead, he said that the surge in prices was mainly due to a 60% increase in the international market price of imported white rice.
This increase was compounded by various countries imposing restrictions on rice exports and the deteriorating performance of the ringgit against the US dollar, he said.
He also reiterated that the government has no intentions of abolishing the Bernas monopoly.
“The ministry firmly believes that the ‘main rice importer’ policy currently in place is the most effective approach to address both current and future challenges,” he said in a parliamentary written response yesterday.
“This policy serves as the primary mechanism that has equipped the country to tackle the instability in international rice prices.”
Mohamad went on to explain that the policy functions as a safeguard, shielding the local padi and rice industry from the uncertainties of the global market.
He said that any decision to change the policy must consider the welfare and income of farmers, the stability and security of the nation’s food supply, as well as the current policies.
Mohamad’s remarks came in response to Oscar Ling (Sibu-PH) who inquired whether the price surge in imported rice was linked to Bernas’ monopoly.
Ling also sought information on when the ministry would consider dismantling the monopoly and allowing more rice importers into the country, speculating that the lack of competition for Bernas may have contributed to the price increases. – October 11, 2023