KUALA LUMPUR: 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.
According to BERNAMA News Agency, Nafas spokesman Datuk Ghazali Hassan clarified that the organisation had received the fertiliser supply contracts through direct negotiations to supply and deliver fertiliser to farmers or paddy growers via Agricultural Farmers’ Organisations nationwide. Ghazali noted that the production of fertiliser is primarily conducted at the Nafas fertiliser plant in Gurun, Kedah, with ownership distributed between the organisation and Petronas, at 80% and 20% respectively.
Ghazali emphasized that the plant is owned by farmers and paddy growers who are members of agricultural organisations nationwide. He added that the value of Nafas’ current contract und
er the SBPKP and SIPP for the period from September 15, 2021, to December 31 this year, is RM1.8 billion for five seasons. Despite not having official contracts for the period from July 2021 to September 14, 2021, Nafas proceeded with fertiliser supply due to urgent needs, using its own financial resources amounting to over RM248 million.
He further explained that during the late 2021 and early 2022 period, there was a global surge in the prices of raw materials for fertiliser, which ranged from 100% to 400%. This caused a significant rise in fertiliser prices and disruptions in the supply chain, leading to a shutdown of the Nafas fertiliser plant for over 41 days and resulting in a shortage of nearly 30,000 metric tonnes of fertiliser.
As a consequence, Nafas had to make emergency fertiliser purchases, including a purchase in June 2022 amounting to approximately RM57 million for 16,313 metric tonnes. Prime Minister Datuk Seri Anwar Ibrahim has indicated that the Malaysian Anti-Corruption Commission (MACC)
may investigate Nafas and the allegations of cartel involvement in the distribution and supply of paddy fertiliser contracts, affirming that authorities have the right to investigate any government agency.