PRIVATE SECTOR CAN HELP RAISE FOOD OUTPUT

KUALA LUMPUR, Feb 26 (Bernama) -- The private sector can play a vital role
in complementing the government's efforts in increasing food production,
Minister of Agriculture and Agro-based Industry, Mustapa Mohamed said
Thursday.

The development of new and sustainable technology as well as setting up of
plants for agricultural inputs would boost food and agricultural products, he
said in his welcoming remarks at the D-8 Ministers' Meeting on Food Security,
here.

Mustapa said the agriculture sector has been identified as the
third engine of growth under the current Ninth Malaysia Plan.

He said emphasis is given to New Agriculture, which entails expansion of
large-scale commercial farming, ventures into high quality and value added
primary and processing activities as well as the application of biotechnology in
agriculture.

"The responses to the food crisis have been varied. Some have imposed
restrictions on the export of staple food, increased food stockpile, subsidised
food production through the provision of agricultural inputs and controlled
input costs," he said.

However, he said such measures would only result in short-term respite and
might eventually lead to medium and long term price instabilities in the
domestic and global markets and trade distortions which will hamper the optimum
utilisation of scarce resources.

-- BERNAMA