On July 3, the Pahang Forestry Department launched “Ops Pamah” – cutting down 15,000 Musang King trees planted in 101 hectares of forest reserve. The illegal cultivation has been going on for over 20 years. They did this (cutting the trees) in 9 days!
Source: www.says.com
In any developed nation, cutting of trees will be a big “No-No”. But not here in Malaysia, especially if it was planted originally by clearing a forest reserve. Where was the Forestry Department then? Sleeping soundly?
The intention is to replant the area with 20,000 saplings of the Meranti Temak Nipis. And then to partrol the area like never before! Do you believe this? What started this mess?
Prickly, creamy and pungent, durian (Durio zibethinus) is regarded by many in Southeast Asia to be the king of fruits. Durian’s commercial value has risen in recent years, especially since it became popular in China. In 2019, China imported some US$1.7 billion worth of durians. Although Thailand dominates supply in this market, the Malaysian government aspires to increase the country’s market share to well beyond the current 10 per cent. Two factors are likely to increase Malaysia’s durian exports to China in the future. First, Malaysia secured the rights to export frozen whole durians to China in August 2018. Second, there is an increasing demand for Malaysia’s premium durian, especially the ‘Musang King’.
The Covid-19 pandemic has adversely affected the demand for durians in China in 2020. But the long-term constraint is likely to come from the supply-side. Not only is there a long gestation period for durian trees (more than five years), the Musang King variety only thrives in specific geographical areas in Malaysia. One of these areas is the district of Raub, Pahang. As the durian industry booms, durian plantation lands in Raub have become of interest to various parties. This is because many of the affected farmers (over 1,000) have been cultivating durian on land that is state-owned.
The most recent struggle over land for durian cultivation was in March
2020, when the Pahang state government’s agency for agriculture development,
Perbadanan Kemajuan Pertanian Negeri Pahang (PKPP) signed agreements with a
private company, the Royal Pahang Durian Group (RPD). This was to form a joint
venture to develop a durian processing centre and to legalise durian farming on
encroached state lands.
On 24 June 2020, the Pahang government awarded a 30+30 year lease and the right to use over 5,357 acres of land in Raub to the joint ventures. A month later, the affected durian farmers in Raub were given the ultimatum of accepting a sub-lease of 10+10 years with the joint venture company or risk being evicted for illegal land occupation. The proposed sub-lease contract requires each farmer to pay a levy of RM6,000 (US$1,473) per acre and to sell their Grade A Musang King to the joint ventures at a fixed price of RM30 (US$7.40) per kg for two years starting from 2021. As for rates for 2023 through to 2029, the price per kg would be set upon discussions with the farmers, with the lowest rate maintained at RM40 per kg including the levy, and the highest at RM45 per kg.
Not surprisingly, the ultimatum and proposal were met with stiff resistance by the durian farmers. They felt that the state had colluded with a private company to unfairly extract their hard-earned profits. The state and the private company have not previously invested any time and resources in the farmers’ ventures. The case has since gone to the courts with the farmers seeking a judicial review on two matters – the state government’s order to vacate their lands and its decision to award the lease and the right to use to the joint venture company. A temporary reprieve was obtained by the farmers when the court ordered the state authorities to cease all enforcement and eviction measures against the durian farmers until the judicial review.
Under the Federal Constitution, land-related matters are dealt with under state jurisdiction. It would perhaps be less controversial if the entire 30+30 year lease is given to PKPP because the land does belong to the state. PKPP can then provide a sub-lease to each durian farmer. Why should another private company (RDP) be a beneficiary of the lease? As a state-owned agency, PKPP should have sufficient resources to develop the industry including financing the proposed durian processing plant. As part of a sub-lease agreement with farmers, the PKPP could also assist them in obtaining the Malaysian Good Agricultural Practices (MyGAP) certification, which is required by China for durian imports. After all, it is the role of the government to assist the private sector to overcome such non-tariff barriers. If the state government does not have the expertise nor the human resources to provide direct technical assistance to farmers on matters relating to MyGAP, it could encourage private provision of such services.
The Pahang MB expressed fears that this Musang King saga may spill into a racial issue. The land grabbing is by Malays and Chinese business persons and those poor farmers are Chinese and Malays. Raub had been a MCA stronghold up to 2013. Now it is represented by DAP.
What arrangement would allow the durian industry in Raub to flourish whilst ensuring that the state government receives its fair share of revenues (lease payments, quit rents and tax revenues)? To do this, the courts should stay the ‘grabbing hands’ of the state and allow the ‘invisible hand’ of the market to do what it does best in commerce. This would require the court to recognise the right of the farmers to be fairly compensated (for past investments, should they choose to exit farming) or to a fair revenue-sharing contract (should they choose to continue farming). Such a contract should be negotiated without the threat of eviction.
The boom in Malaysia’s durian exports has brought about a conflict
between major players and institutions in the country – farmers, state and the
royalty. A fair solution to this conflict can only be obtained through
negotiations without any threat of eviction. Otherwise, it will remain a smelly
and thorny issue.
References:
A thorny dispute over land and profits. Durian plantations in Raub, Malaysia, Cassey Lee, https://www.iias.asia
Forestry Dept clears 15,000 durian trees in Raub, operation almost complete, Mohd Rafi Mamat, www.nst.com.my, July 11, 2021
Company refutes Pahang’s Musang King
farmers’ “modern slavery” accusations, says scheme protects Malaysia’ durian
industry, Emmanuel Santa Maria Chin, www.malaymail.com,
22 Aug 2020
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