KUALA LUMPUR – Agriculture and Food Security Minister Datuk Seri Mohamad Sabu stated that any suggestions to add the number of approved permits for rice importers must be discussed with the finance and economy ministries, as well as the Prime Minister’s Department.
In response to a question by Pasir Gudang MP Hassan Abdul Karim, Mohamad explained that during the rice crisis of 1972, private importers refused to import rice due to potential losses caused by the spike in worldwide prices of the grain.
“Learning from this crisis, the government implemented a model where rice importation is granted to a single entity. The privatisation model of Bernas operates on a cross-subsidy basis, where import profits are used to fulfil government responsibilities.
“Under the latest Bernas agreement, the government has mandated that Bernas perform 10 obligations on behalf of the government, with an estimated cost of RM3.216 billion. The government also reviews Bernas’ performance and effectiveness in fulfilling these responsibilities through the Bernas KPI monitoring committee twice a year,” he said.
Mohamad emphasised that any decision regarding changes in the policy of the main rice importer must consider the welfare and income of rice farmers, as well as the stability and security of the country’s food supply. – October 16, 2023