NAFAS Denies Being Fertiliser Cartel

KUALA LUMPUR, Dec 2 (Bernama) -- The National Farmers' Organisation (Nafas) has once again denied claims that it is a cartel controlling fertiliser supply after issues surrounding fertiliser supply contracts under the Federal Government’s Padi Fertiliser Assistance Scheme (SBPKP) and the Rice Production Incentive Scheme (SIPP) came to light previously.

Its spokesman, Datuk Ghazali Hassan, clarified that Nafas had received the fertiliser supply contracts through direct negotiations to supply and deliver fertiliser to farmers or paddy growers via Agricultural Farmers' Organisations nationwide.

"For the production of fertiliser, almost all of it (except in cases of critical issues) is done at the Nafas fertiliser plant in Gurun, Kedah, where 80 per cent of the shares are owned by the organisation and 20 per cent by Petronas," he said.

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"Ironically, the plant is owned by farmers and padi growers who are members of agricultural organisations nationwide," he added in a statement today, adding that the value of Nafas' current contract under the SBPKP and SIPP for the period from Sept 15, 2021 to Dec 31 this year is RM1.8 billion for five seasons.

Nafas did not have any official contracts for the period from July 2021 to Sept 14, 2021, but the organisation had to proceed with fertiliser supply and delivery due to the urgent needs of padi farmers who had already begun planting.

He said that if Nafas had not made the supplies, it could have led to a national issue and protests, as well as negatively impacting the income and padi production in the country.

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Ghazali said that as a result, the organisation had to provide the fertiliser supplies using its own financial resources, amounting to over RM248 million.

"During the fourth quarter of 2021 and the first and second quarters of 2022, while the fertiliser supply work was being conducted, there was a global increase in the prices of raw materials for fertiliser, ranging from 100 to 400 per cent, which led to a sharp rise in fertiliser prices," he said.

"This situation caused disruptions in the supply of raw materials to Nafas and other private fertiliser plants. Consequently, in March and April 2022, the Nafas fertiliser plant in Gurun had to shut down for more than 41 days, resulting in a shortage of nearly 30,000 metric tonnes of fertiliser, which affected the supply for the second and third quarters of the year to farmers and paddy growers nationwide.

"As a result, Nafas had to make emergency fertiliser purchases, and in June 2022, Nafas made a purchase amounting to approximately RM57 million for 16,313 metric tonnes at a rate of around RM3,500 per tonne," he said.

Prime Minister Datuk Seri Anwar Ibrahim had earlier said that he would leave it to the Malaysian Anti-Corruption Commission (MACC) to investigate Nafas and the allegations of cartel involvement in the distribution and supply of padi fertiliser contracts.

Anwar, who is also Finance Minister, was quoted as saying that the authorities have the right to investigate any government agency.

-- BERNAMA