SHAH ALAM: No guarantee in price reduction for rice even after the government decided to open up the market, said Padiberas Nasional Bhd (Bernas) chief executive officer Ismail Mohamed Yusoff said.
"If we are talking about bringing the prices of rice down, which we think is at reasonable level currently, this would also put risk to the paddy farmers’ welfare,” he told reporters at a briefing here today.
Ismail reiterated that the company is not monopolising the market but rather acting as the nation’s single gatekeeper for the imports of rice.
Under the single gatekeeper mechanism, which has been implemented since 1974, Bernas has continued to ensure that the welfare of farmers is prioritised and the supply and availability of rice to consumers remain at stable and affordable prices, he said.
"In addition to safeguarding food security, Bernas also maintain the quality of local paddy harvest through grading processes, as well as that of imported rice through quality surveyors.
He said the single gatekeeping mechanism is an important function to ensure that the local paddy and rice industry is well protected.
“The single gatekeeping plays the role of sole importer, focusing on ensuring that the price of imported rice is not lower than local rice, among others.
“This guarantees the market for local rice, and protects farmers’ welfare.
“Besides that, the mechanism also ensured that the single gatekeeper imports rice regardless of international prices - even if this means that import prices are high and unprofitable.
“In addition, the single gatekeeper cannot import more rice as imports are to match and meet with local demand and to complement local production,” he said.
Meanwhile, Ismail reiterated support for the local paddy and rice industry by ensuring farming communities, stakeholders and all consumers' interests are guaranteed over the decades.
“For over two decades, Bernas has been responsible for maintaining food security - primarily by safeguarding farmers’ income through ensuring the full take up of local rice production, and consumer accessibility to rice at stable and affordable prices,” he said.
Ismail said the company is ready to give full cooperation to the Ministry of Agriculture and Agro-Based Industries and all industry stakeholders to determine the best operating model which suits the local paddy and rice industry.
“We believe that Bernas’ current system fulfill those requirements, and that the system works,” he said.