AT the beginning of this month, the price of imported rice increased between RM7 to RM10 per packet of 5kg to 10kg of rice.
The rice consumption in Malaysia was at 2.9 million metric tonnes (2022), and it was reported that the country imported 30% of its rice which narrowed our rice import to around 870,000 metric tonnes per year. Malaysia has around 300,500 ha of paddy field land and 190,000 ha located in the Borneo states.
The increase in the price of rice can be explained by the steady decline of our currency, the Ringgit Malaysia; the temporary halt of rice export from India, and the continuing global conflict. So the only rice producer in Asia that is in abundance is Vietnam and Thailand which sell rice at a higher rate due to high demand.
An economic 101: shortage in supplies, increase in demand would increase the price.
The main question in my mind was: Why is there a monopoly of rice in Malaysia?
Before the formation of Malaysia, rice was basically state affairs, but as times went on, the rice industry in Malaysia was hijacked by the federal government as it saw fit and included in a federal act that ultimately disbanded the Sabah Padi Board, paving the way for a capitalist corporation to have a complete monopoly.
It all began with a federal act called the Lembaga Padi Dan Beras Negara Act, 1971 (No. 47) during the height of emergency ordinance that serves five functions under the act;
(a) to conserve and maintain an adequate supply of padi and rice;
(b) to ensure a fair and stable price of padi for farmers;
(c) to ensure a fair and stable price of rice for consumers;
(d) to ensure a sufficient supply of rice to meet all emergencies;
(e) to make recommendations to the Government in the matter of development of the padi and rice industry
The Act came into force for Malaya (West Malaysia) and Sarawak on September 20, 1971, and Sabah on January 1, 1979, to resolve the rice hoarding issue.
This ultimately caused the closure of the Sabah Padi Board on December 30, 1981, under the Sabah Padi Board (Suspension) Order 1981.
There were subsequent changes made over the years, namely, the Lembaga Padi Dan Beras Negara (Amendment) Act 1986 and Lembaga Padi dan Beras Negara (Amendment) Act 1990.
Finally, in 1994, all of the Acts above were repealed and replaced with the Control of Padi and Rice Act, 1994 (No. 522), marking the beginning of an authoritative figure in Malaysia’s rice monopoly as we all know it – BERNAS.
This begs the question: Can the federal law be extended to Sabah and Sarawak which have their own local rice authority?
The answer to this lies in the timeline in which the law was enacted. As the State was rendered powerless by such a take-over by the federal government, the state was compelled to follow suit.
Rice planting requires land. In the common designation of agriculture reflected in the Ninth Schedule of the Malaysia Federal Constitution, land matters and agriculture belong to the State jurisdiction, as noted in the State list (List II).
So, obviously, there are State laws in regard to rice cultivation; it is found in the Native Rice Cultivation Ordinance (Sabah Cap 87) that was in effect on April 19, 1939, as “To provide for the proper cultivation of native rice lands.” And, follow suit in Agriculture Produce Board Enactment1981 (Sabah No. 18 of 1981) effective April 16, 1987.
This is an extension of the Sabah state government’s authority in the welfare and marketing of our agricultural produce in the State.
Controversially, the admission of Sabah into the Control of Padi and Rice Act, 1994 (No. 522) can be considered an unconstitutional move; even though the Federal Laws lie supreme, it cannot override existing State law that does exist.
In conclusion, we in Sabah reserve the right to plant, harvest, and sell our agricultural produce, including rice.
We have the right to ensure our food granary and security in the best interest of the State. We had lost our rice right since 1979, that was 44 years ago. Are we going to wait for another 44 years to claim it back? — September 8, 2023.
Remy Majangkim is an MA63 historian, researcher, activist, and tutor
