Last Updated: 6:04pm, Mar 18, 2014

KUALA LUMPUR (March 18): The Minister of Agriculture Datuk Seri Ismail Sabri Yaakob admitted that business tycoon Tan Sri Syed Mokhtar Al-Bukhary has monopoly over rice import through his control on Padiberas Nasional Berhad (Bernas).

However, Ismail Sabri said that the government would review the monopoly of import permit (AP) on rice to meet local demand by Bernas.

"Monopoly (of Syed Mokhtar) in import (of rice), I think yes, but our prime minister already answered in Parliament, he will review the monopoly of Bernas on AP, let's see.

"The agreement is not between Ministry of Agriculture and Bernas, it's between the government of Malaysia and Bernas," Ismail Sabri responded to questions asked by reporters on a claim by the oppositions that the government had allowed Syed Mokhtar to monopolise the rice industry.

Ismail Sabri said that he was more than happy to liberalise the AP on rice importation, just like the liberalisation of other APs in the ministry of Agriculture.

Bernas controls 30.6% of local rice market where it imports rice from countries such as Thailand, Myanmar to meet local demand.

He explained that the government had signed an agreement with Bernas, in which Bernas undertook a five-point covernance to safeguard the interest of farmers.

However, he could not give the coverance off hand. And he would disclose the covernance and KPI to Bernas when he wrapped up in the Dewan after the debate.

'De-listing of Bernas has no impact on rice industry'

When asked, Ismail Sabri said that the de-listing of Bernas would not have an impact on the national rice industry, "as long as Bernas upholds the five point covernance to the government."

Although there is a possibility that the agreement between the government and Bernas would be deemed null and void after the restructuring of Bernas, he said the government would have to wait for the latest development.

"If (the agreement is) null and void, we can still sign a new agreement with new entity, that is not an issue.

"I don't think it (Bernas) dares, if it is null and void, their AP will be null and void as well," Ismail Sabri said.

He also pointed out that the ministry was looking into setting up another Lembaga Padi, in which the previous body was turned into Bernas.

The Opposition have expressed their concern over the de-listing of Bernas and its control by tycoon Syed Mokhtar.

Opposition Leader Datuk Seri Anwar Ibrahim had raised the issue in the Dewan but did not get any answers from the Minister.

PKR Alor Setar MP Gooi Hsiao Leung said that the government has failed to use its golden share in Bernas to monitor the its operation and allowed Syed Mokhtar to acquire 91% its stakes.

Gooi also said that the 10% respective stake held by National Farmer Association (Nafas) and National Fisherman organisation (Nehmat) has been diluted throughout the years.

-more to follow-

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