Govt backing controversial rice project

A State negotiating team will assess the K5 billion Central province commercial rice project that will see Papua New Guinea produce rice on a larger scale, reports The National.
Agriculture Minister Sir Puka Temu told parliament last Friday that the Central commercial rice project was initiated by the former Somare government under the leadership of Ano Pala. The project is valued between K3 billion and K5 billion.

“As far as the injection of capital is concerned, it covers 60,000 to 100,000ha of land which will be the first of its kind in the country.
“For the past 30 to 35 years no investor has put his hand up to invest this kind of capital in commercial rice production,” Sir Puka said.

He said commercial rice production was a high risk low yield area and this would be the first time an investor was looking into this possibility.

“The challenges are there and the previous and the current government are assessing particular deed of agreement.”

Sir Puka expressed disappointment at the sector for jumping up and down, including taking out a full-page advertisement.

“I do not know where they are coming from. Issues raised through the media are that the proposal is anti-trade.”

Sir Puka said there was an assumption that the price would increase but the government was looking at that among other issues.
He said the exclusivity of the import of rice for a specific period was under negotiations.
Sir Puka said the state negotiating team comprised Treasury and Finance, National Planning, Internal Revenue Commission, Environment and Conservation, ICCC and Lands and Physical Planning.

“Some people are putting the cart before the horse but, at the end of the day, national interest must come first.”

He said for commercial rice production,

“PNG does not have land and the single biggest land available is in the Kairuku-Hiri area where landowners and leaders have agreed to venture into this project”.
“Rice must be exported and become cheaper. The long term gains negate the short term pains,” Sir Puka said.

He said the Trukai agreement would be reviewed this month and the government hoped to come with a win-win situation for all parties.