This article first appeared in The Edge Financial Daily on October 18, 2018

KUALA LUMPUR: The government is ready to take over the functions of Padiberas Nasional Bhd (Bernas) after the termination of the concession in 2021, the agriculture and agro-based industries ministry said, adding that this is to ensure any impact on the country’s rice industry can be addressed accordingly.

“Forming an agency or a board with a new, more effective management model and strong financial capabilities to control the development of the industry will definitely be considered,” its Minister Salahuddin Ayub said yesterday.

He was replying to a question from member of parliament for Tangga Batu Rusnah Aluai, in Parliament yesterday, who asked whether the government intends to re-establish the National Paddy and Rice Board to take over the functions of Bernas.

“This matter will be studied in detail by taking into account all aspects and stakeholders in the industry, including in terms of food security and the welfare of industry players such as farmers, producers and the public,” he said.

In June, the government announced that Bernas’ monopoly to import rice has been terminated. A working paper on the break-up will be drafted with feedback from the ministry and other stakeholders to be submitted to the government for further action.