M'SIA'S BERNAS BUYING LESS RICE FROM ITS OWN JV COMPANY IN THAILAND

By D. Arul Rajoo

BANGKOK, Oct 20 (Bernama) -- Despite Padiberas Nasional Berhad (Bernas) having a
49 percent share in a Malaysia-Thai joint-venture rice company here, only six
percent of rice imported from Thailand was bought from its own company this year
compared to as high as 93 percent six years ago.

Bernas is Malaysia's regulator of rice industry and distributor.

A 10-year statistics compiled by the Asian Peninsula Corporation (APC),
set up in 1997, showed that in 1998, APC accounted for over 300,000 metric
tonnes or 88 percent of the 350,000 tonnes of rice imported from
Thailand.

Malaysia's biggest import so far from Thailand was about 450,000 tonnes in
2004, with Bernas buying close to 350,000 tonnes from APC or 75 percent of the
total purchase, and the percentage went up to 78 percent in 2005 and then
dropped drastically.

In 2006, Bernas imported about 350,000 tonnes from Thailand, of which 63
percent came from APC and last year, about 45 percent of the 420,000 tonnes of
rice came from the company.

But despite the rising world price since the third quarter of 2007, Bernas
bought less and less rice from its own JV company set up in the world's biggest
rice exporter in 1997 with the aim of ensuring consistent supply in terms of
quantity and quality, as well as for stability of national food security in
Malaysia.

Besides Bernas' subsidiary, Bernas Overseas Co Ltd, which owns 49 percent
stake in APC, the other shareholders are Huay Chuan Rice (25.5 percent) and Thai
Hua (25.5 percent), the companies linked to Thailand Rice Exporters' Association
president Chookiat Ophaswongse.

This year, Bernas bought 200,000 tonnes in a special purchase made in May
through a deal brokered by the Malaysia and Thailand governments.

While APC exported 55,000 tonnes of rice as of September this year, its
export to Malaysia was only 19,000 tonnes.

During a recent visit here, Agriculture and Agro-based Industry Minister
Mustapa Mohamed told his Thai counterpart that some of the rice imported
this year from Thailand was of lower quality.

Mustapa also visited APC's warehouse located along the Chao Phraya River in
Samut Prakarn province and was briefed on its operations by Chookiat.

Asked to comment on speculations here that Bernas wanted to dispose its
shares in APC, Mustapa said he could not comment on it as Bernas, being a
privatised body, was free to decide on its commercial operations.

APC's warehouse has the capacity to hold 100,000 tonnes of rice and modern
reprocessing facilities for grading and 12 barges.

Of the over 200 rice-exporting companies in Thailand, APC was ranked 14th
in
2007.

-- BERNAMA