Rigo Rice has agreed to partner with the National Government and Wilmar International Limited to establish the first national rice company in Papua New Guinea.
Rigo Rice has offered to the state, 5000 hectares of land that will be converted to shares in this new joint venture partnership.
Minister for International Trade and Investment, Richard Maru said, “This has been a dream that we have been waiting for over the last 50 years since Independence. This agreement now gives us the first opportunity ever in PNG’s history to build a large-scale commercial and irrigated rice farm. This signals the start of a major transformation of our agriculture sector where we are moving from subsistence and smallholder farming to large-scale irrigated farming.
“There is a potential for large-scale commercial and irrigated farming for sweet potato, taro, maze and many others, but we will first start with rice, our largest food import.”
Maru says 5,000 hectares is still not enough to replace PNG’s K900 million worth of rice imports annually.
“We need 100,000 hectares of rice farm to feed all Papua New Guineans with our annual demand being 400,000 metric tons. We will start with Rigo and the Sepik Plains and we are happy to talk to other provinces and districts with the same potential as Rigo and Sepik Plains who would like to go into large-scale commercial rice farming. The sooner we find 100,000 hectares of land and the sooner we have the rice planted in this country, will win because we will stop all the rice imports,” Maru said.
Maru says the government will give opportunity to Papua New Guineans to own the rice industry. The joint venture company will be publicly listed on the National Stock Exchange.
“We are now talking to KCJH to agree on a name for this JV company. KCH will hold the shares of the government. We want this to be a private-public partnership and we want to say that to the Managing Director of Rigo Rice, Jeffery Kennedy for making land available under this JV.”
Maru says an invitation has been extended to the Chairman of Wilmar International Limited to undertake a feasibility study in the coming weeks at Rigo and the Sepik Plains.
“The state has the equity and is ready to fund this JV company. We will also be looking at other investors both local and international to invest in rice,” Minister Maru stated.