By JAMES LARAKI
WHILE negotiations are reported to be underway for the proposed
Central province commercial rice project, there is already air of controversy, calling
on the negotiation team to scrap any plans for monopoly.
The negotiation team led by the Minister for Agriculture and
Livestock, Sir Puka Temu, says the project is a first its kind and wants to see
it come through.
Sir Puka is arguing that no one has put their hand up to invest
in commercial rice production in PNG in the last 35 years or so and the
interest shown by the investor in the Central province should be supported.
The minister says he is aware of the many challenges such
investments brings and the negotiation team is assessing the particulars of the
project agreement.
He has called on those concerned not to jump up and down, while negotiations
are still going on.
But the National Research Institute (NRI) and, the Independent
Consumer and Competition Commission (ICCC) have made their intentions clear, calling
on the government to abandon any
plans to monopolise the rice industry, saying it’s devastating to the people’s
welfare.
 |
John
Mazi checking on his rice plants at his backyard garden at 10-Mile, outside Lae
|
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| Smallholder rice growers from the Mul, Western highlands, having look at
a rice field at the Highlands Agriculture College during a rice farmers
training |
They have called on the government to learn from
failed agreements in the past and present, and not to grant monopoly without
proper assessment of the likely negative implications on the people’s welfare
and the Papua New Guinea economy.
With rice now being a staple food, these agencies are of the view
that it is too risky for the government to allow monopoly in the industry.
They are concerned the welfare of rice consumers will be at
stake if monopoly is granted.
They are of the
view that benefits enjoyed by the public under the current competitive markets are
likely to be done away with any plans of monopoly.
Currently, the public is benefiting from competitive
environment including lower prices, variety of rice products and food security.
These concerns
have merit now that rice has now become prominent in the household food baskets
with about 300,000 tonnes consumed annually.
For the benefit of the rice consumers, we
would assume that any negotiations on this front are undertaken with a sense of
care and responsibility.
For the benefit of the people, we would
expect all players to work out what is best for the national interest,
superseding those of investors, rice importers, and any individuals or
organisations.
Global issues such as of food security,
volatile food prices, and likely impacts of climate change on the rice industry
needs to be taken into account as well along with other negative impacts in the
short and long term.
While any plan to grant monopoly is not
welcome, we urge all players to look at the best possible options to developing
the rice industry in the country, including any potential to growing rice
locally.
Currently, almost all the rice consumed
in PNG is imported.
Despite many attempts made to increase
production, only about 10,000 tonnes is produced locally.
This is so despite rice can grow in PNG
and has been grown for over 100 years.
Research and development of rice over the
years have also indicated that it can be grown in PNG, with promising varieties
already identified.
Many
attempts to promote domestic rice production over the years have had limited
success. Despite renewed interest and recent reports of a surge in rice
cultivation by local farmers throughout the country, domestic rice production
still remains minor and highly local.
The
Central project is reported to be worth around K5 billion and is a major
investment in the agriculture sector, with an estimated 100,000 hectares of
commercial rice.
This
will certainly bring increased benefits to landowners and local communities, in
terms employment, training, and other spin-off benefits.
Such
projects will lead to self reliance and contribute to reduction in import
bills.
It
is an important project that will bring many changes and benefits to the people
of the district, Central province, and PNG.
The
project is likely to provide an opportunity for PNG to produce rice on a larger
scale.
Reports
indicate that the project, once
developed, is expected to generate some 5,000 jobs, produce over 3
million tonnes of rice, save over K600 million in import bills and earn in
excess of K3 billion per annum.
Beside
the huge financial gains, it will certainly raise the profile of the agriculture
sector in PNG to new heights.
While such projects are likely to bring many
benefits, any agreements reached should always consider national interest over
others.
The current controversy on granting of possible monopoly
to the rice and it negative impacts needs to be considered seriously.
We hope the government will consider all options available
and come up with win-win solutions for all players in the industry.
We also feel that it is about time for the
government to revisit all existing agreements in place to come up with what is
best for all concerned parties.
We believe the current
debate and controversy surrounding the rice industry is a healthy one and at
the end of the day we would expect national interest to prevail.
