Monday, April 25, 2011

#Flash* Govt extends Bernas agreement for 10yrs to 2021

KUALA LUMPUR: PADIBERAS NASIONAL BHD [] (Bernas), which is the largest rice miller in Malaysia, has received a 10-year extension from Jan 11, 2011 to Jan 10, 2021 a contract between the federal government and the company.

Bernas said on Monday, April 25 it had received a letter dated April 20 from the Public Private Partnership Unit under the Prime Minister's Department on the extension of the Bernas agreement dated Jan 12, 1996.

'The government has also agreed to grant Bernas an interim period of six months from Jan 11, 2011 to July 10, 2011 to enable both parties to finalise the terms and conditions of the new Bernas agreement,' it said.

Bernas said pending the execution of the new agreement, the terms and conditions of the Bernas agreement dated Jan 12, 1996 would apply throughout the interim period.

Bernas and its group of companies are involved in the procurement and processing of padi; as well as the importation, warehousing, distribution and marketing of rice in Malaysia.

It currently controls about 24% of the padi market and 45% of the local rice demand.

Bernas purchases padi from farmers at 32 factories nationwide and 50 purchasing centers located at the premises of participating Bumiputra rice mills nationwide.'' The wide distribution of these procurement centers provide better services to farmers enabling them to sell their padi without having to travel far.

Together with the millers under the Bumiputra Rice Millers Scheme, the groups purchase about 800,000 tonnes padi annually from local farmers.

There are more than 400 commercial rice mills in the country, out of which 32 are owned and operated by Bernas.'' Bernas rice mills are equipped with the latest TECHNOLOGY [] and located mainly in the major granary areas of Kedah, Perlis, Kelantan, Seberang Perak and Kuala Selangor.

Bernas mills around 400,000 tonnes of padi annually which gives a total rice output of 270,000 tonnes of the total rice produced by all mills in the country.

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