Incentive Schemes For Rice Sector

Without private sector involvement in the rice-growing industry, it would be difficult for the sector to grow or even maintain its 65 per cent output by 2010.

Realising this, the Agriculture and Agro-based Industries Ministry is drawing up incentive schemes to attract private sector investments.

"The private sector does not find the rice industry profitable as the cost is high and the returns slow, but we are working towards this," said its Parliamentary Secretary Datuk Rohani Abdul Karim.

Minister Tan Sri Muhyiddin Yassin is discussing with the National Advisory Committee on Agriculture Development to draw up incentives for various agricultural sectors, including rice, she said at the Parliament lobby.

Rohani said as the Government was focusing on automation, precision farming and implementing various mechanisms to develop and modernise the rice industry, private sector involvement was crucial.

She said that it was government policy to ensure the country's rice output was maintained at 65 per cent.

Malaysia To Have Only Well - Equipped Rice Mills

The Agriculture and Agro-based Industries Minister said enforcement officers from the Padi and Rice Supervision Unit would be checking the rice mills soon.

"We are going to evaluate the actual capacity of the mills and ensure that they abide by the requirements as stated in the licence, including whether they have the adequate machinery," he said.

He said some of the mills could not operate at maximum capacity because most of the machines were obsolete.

If they are found breaching the requirements stated in their licences, Muhyiddin said action could be taken against them under the National Padi and Rice Act.

He said inadequacy of machinery, such as padi dryers, would affect the quality of rice.

"If they do not have the proper dryer, for instance, the padi will be piled up for a long time outside the mills and in the end, the quality will be affected," he said after launching the "Makan-Makan Beras Tempatan" (Eat Local Rice) campaign at Jaya Jusco in Kepong.

On the import of rice, Muhyiddin said the Government was currently reviewing its policy and a consultant had been engaged to conduct a study on the matter.

"If we want to reduce rice imports, local production has to be increased. We must also consider the costs to be borne by the producers and the consumers," he said.

To date, there are 275 licensed millers, 30 per cent of which are under Padiberas Nasional Berhad (Bernas). The nation's annual rice production is about 1.1 million tonnes.

The "Eat Local Rice" campaign, which will be on for two months, is organised by Bernas in conjunction with the International Year of Rice 2004.

Bernas chief executive officer Ahmad Fuad Abdul Wahab said Bernas was aiming to sell three million sacks of Bernas' 16 top rice brands within the two-month duration.

He said Bernas had allocated nearly RM2 million to execute the programme, which was aimed at promoting local rice.

Millers Urged To Use Certified Equipment

The rice millers in Malaysia are urged to use only government-certified equipment and instruments to determine the quality of paddy sent in by farmers for processing as a measure to resolve the long-running "feud" between farmers and millers in calculating the percentage of moisture content in paddy.

The Agriculture and Agro-based Industries Ministry hopes this would help resolve the long-running "feud" between farmers and millers in calculating the percentage of moisture content in padi.

Minister Tan Sri Muhyiddin Yassin said the congak-congak or guessing method used by millers often led to disagreement and unhapiness among farmers.

There were also delays and long queues at the mills as farmers and millers argued over the percentage, which would then be deducted from the total payment for the harvest.

"We need a scientific way to measure the moisture so that both parties can be assured of accuracy.

"Farmers feel that they are at the mercy of the millers, especially when the calculation varies from one miller to another.

"One will set the moisture content at 15 per cent while another will quote 18 per cent.

"So no more congak-congak. The calculation must be done in a standard way using calibrated equipment," he said at a Press conference after attending a briefing at the Muda Agricultural Development Authority (Mada) here today.

Muhyiddin said the law and regulation on the production and sale of padi and rice would be amended to include the new procedure.

And before it is implemented, the relevant bodies including the rice millers, the area padi farmers' associations and government agencies like Mada would be consulted.

Muhyiddin said the ministry would also check on the 300 licensed rice millers to ensure that their equipment and operation met the specification in their licence.

Meanwhile, he said the Government would consider Mada's request for an additional RM1 billion fund to improve the infrastructure in the 97,000- hectare area and upgrade the livelihood of the 48,000 families of which 14 per cent are categorised as living below the poverty level.

(Poverty is defined as those earning RM560 monthly and below.) Currently, only 10 per cent or 5,600ha in Mada are involved in the first phase of the 10-tonne padi yield per hectare programme.

"The Government spends RM70 million annually for Mada, but we need RM80 million more if we want all the farmers to enjoy a 10-tonne padi yield," he said.

He also said the ministry was proposing that the farmers venture into downstream activities such as setting up their own rice mills or own a stake in one.

Later, at a gathering with Mada farmers, Muhyiddin presented awards to 10 farmers who succeeded in getting 10-tonne padi yields per hectare during the recent harvest.

Malaysia To Achieve Self-Sufficiency In Rice Production By 2007

Malaysia will be able to achieve self-sufficiency in rice production by 2007 provided farmers incorporate the latest farming technologies in padi cultivation.

Felcra chairman Datuk Hamzah Zainuddin said the target could be met with the newly-introduced precision farming method and use of high-quality padi seedlings.

He said local production contributed about 60 per cent of total rice consumption with the rest imported from countries in the region.

"Felcra is confident the target can be achieved if local production can be upped from the current national average of 4.5 tonnes of padi per hectare per season," he said after briefing Raja Muda of Perak Raja Dr Nazrin Shah on Felcra's padi-planting scheme in Seberang Perak.

He said to meet the target by 2007, padi farmers must double production of the crop per hectare per season. Each season lasts six months.

Hamzah said Felcra had set a target of producing at least 10 tonnes of padi per hectare per season in its own padi-planting scheme, covering about 5,000ha in Seberang Perak. He said precision farming involved use of satellite and other new technologies to detect mineral content of the crop land.

"This is a modern method which will enable farmers to reap full benefits from their padi land by increasing rice production." Through this method, Malaysia would be able to compete with major rice producers in the region.

Felcra (Federal Land Consolidation and Rehabilitation Agency) has since its inception rehabilitated 250,000ha out of 500,000ha of idle land nationwide by planting it with oil palm, rubber and padi, among others.

Source: New Straits Times-Management, Malaysia

Malaysia's Padiberas, China National Cereals Sign MOU

In a statement, Padiberas said China-based COFCO is involved in the export and import trading including exporting, distribution, marketing, wholesaling and retailing of rice, palm oil and other produce.

The MOU, which is valid for one year from Oct 1 2003, outlines the parties' intention to have trade arrangements involving the exchange of produce such as rice and palm oil, of equivalent value, Padiberas said.

It added that the MOU is not binding and is not a formal or legal agreement between the parties.

The company said the initial transaction involves the exchange of 30,000 metric tons of China white rice from COFCO for palm oil from Padiberas of equivalent value.