No rice ‘monopoly’

 THE rice industry in Papua New Guinea will not be monopolised, Prime Minister Peter O’Neill has said. He said the government wanted fair trading and competition in the rice industry.

He said rice had become a staple diet for the people and the last thing the government wanted to do was put unnecessary additional burden on the people purchasing the product.

“There has been some proposal to government by many companies who want to enter this industry. Government has been very careful and we have analysed all the proposals,” O’Neill said in parliament yesterday.

“In fact, we are encouraging much more competition in the growing of rice in the country, not necessary be given to one company but be given to all companies who want to grow rice.”

O’Neill said the government had put in some pre-conditions and given to the Department of Agriculture and Livestock to guide investment in the industry. 

He said at the moment any company could import rice and their long term commitment to our own food security was not there. 

“We are becoming more and more dependent on this particular product and we are more dependent on other countries providing that product to us. We have been told on many occasions that we cannot grow rice and that is proven to be wrong.

“In fact, PNG can grow rice, we want to encourage growing of rice in our country and that is the responsibility that this government is taking on.”

O’Neill said the government would set out a regulation which would be announced by the minister through parliament to regulate the industry and that companies that were interested must have a minimum investment of at least K200 million for the rice industry and for them to get a rice import permit.

He said that companies that wished to import rice to meet the shortfall while the government tried to build capacity of rice production must be involved in growing rice in PNG.

“We don’t want them to be just traders, we want them to grow rice and if there is a shortfall, import permits will be given to those companies only.

“It is not restricted to one company, it is open to anybody but they must invest money in the country to try to make sure they are encouraged to grow rice in the country.”