A research fellow at Universiti Putra Malaysia’s Institute of Agricultural and Food Policy Studies says 63.6% of the paddy and rice market is effectively under Bernas’ control.
Speaking to FMT, she noted that Bernas and its associates account for 48% of the total amount of paddy milled, which translates to 33.6% of the rice demand in Malaysia, and it is the sole importer of 30% of the country’s rice requirement. She also noted that Bernas also enjoyed a monopoly in rice stockpiling, a task given to it by the government in the name of food security. The stockpile it manages is distributed only during national emergencies.
She said this had resulted in a rise in the vermicelli production of Bernas and its associates and caused several unaffiliated manufacturers to close shop.Fatimah said Malaysia was not yet ready for total market liberation, but she urged the government to start the ball rolling by allowing competition in the import of rice.
Fatimah said there was a huge wealth divide between paddy farmers and Bernas, big millers and wholesalers. She noted that about 90% of paddy farmers belong to the Bottom 40 income group.