Ideas: Liberalise padi and rice industry if Bernas concession extended

The Institute for Democracy and Economic Affairs has urged the government to have a concrete plan to liberalise the padi and rice industry if it is to extend Padiberas Nasional Bhd’s concesson.

It has other advantages too, such as minimal disruption and hence the stability of the rice system and no hassle of restructuring activities, which can be a formidable and risky task. If the government imposed additional social obligations on Bernas, it would incur a higher cost to Bernas which later may be transferred to producers or consumers either through lower price to producers or higher price to consumers.

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Liberalise rice industry to enhance national food security | New Straits TimesAlthough Bernas has fulfilled its social obligations, the monopoly has created unintended negative consequences and missed opportunities for the paddy and rice industry.
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