A GROUP of durian farmers under the Save Musang King Alliance (Samka) has accused Royal Pahang Durian Resources PKPP Sdn Bhd (Royal Pahang) of being deceitful for claiming that some farmers had agreed to the land legalisation scheme.

The state government-appointed consortium said yesterday some 300 farmers have registered with the company, and of them, 133 farmers have confirmed and partially paid the earnest money (deposit) of RM1,000 per acre (0.4ha).

Samka, however, said that such claims were untrue and that the farmers only registered for a briefing session conducted by the consortium.

Samka also said the payment made by farmers was not an acceptance of the scheme and they have instead been forced to buy access permits to enter the farm as Royal Pahang had been threatening to bar entry to farmers.

“Royal Pahang is lying brazenly to the public with their claim that some 300 farmers are ready to sign the contract, while 133 of them had paid the earnest money of RM1,000 to the corporation,” it said in a statement today. 

“The 300 farmers who registered with the corporation claimed by Royal Pahang are actually farmers who merely attended its briefing and, by following ordinary registration process, registered themselves before the briefing started. 

“The farmers who made the so-called ‘payment’ were by no means signing any contract, but only wanted to purchase an ‘entry permit’,” it said in a statement.

This was because Royal Pahang utilised the final notice issued by the Land Office on August 24 to threaten the farmers, saying that only those who have purchased the “entry permit” will be allowed to enter their durian farms after August 24, added the group.

“Due to immense pressure from the corporation, some farmers were forced to purchase the so-called ‘entry permit’ for RM1,000 per acre of their land. Nevertheless, this is in no way an indication that the farmers had agreed to the terms and are ready to sign the exploitative and unequal contract offered by Royal Pahang.”

Samka said Royal Pahang had promised full reimbursement should farmers refuse to sign the contract and that the existence of a reimbursement mechanism proves that Royal Pahang had acknowledged that the farmers were not signing any contract, but merely paying for the temporary “entry permit”. 

Samka said it has officially launched a “Reimbursement Campaign”, where it will urge all farmers who had purchased entry permits, unwillingly or under undue influence to get refunds from the consortium. 

On the state-backed consortium’s claim that farmers are assured of a profit margin of more than 200% with the cost of durian production standing at RM8/kg, Samka said the consortium came up with a sloppy calculation which further proves that they have no knowledge on durian farming and the difficulties farmers face.

“Was Royal Pahang aware that it would take up to 10 years in order for a durian seed to grow into a matured durian tree? Why did Royal Pahang selectively neglect the fact whereby the farmers had to put in hard work and high cost of production while receiving zero profit for 10 years?

“Farmers’ profit or loss will be affected by various inconstant factors. When facing extreme weather, harsh environments as well as disasters, some farmers could receive no profit at all or even face huge losses,” it said. 

On the levy of RM6,000 per acre for year 2020 imposed by Royal Pahang, Samka said such exorbitant charges shows that the consortium is facing a financial crisis and has resorted to impose such levies to forcibly seize farmer’s money in order to save itself.

“The Companies Commission of Malaysia (CCM) report clearly shows Royal Pahang only has a share capital of RM1 million, while it recorded a loss of RM2.7 million and only RM702 in revenue. 

“Royal Pahang’s shaky and perilous financial situation is therefore indisputable and it should stop sacrificing farmers by offering the exploitative and unequal contract, just to serve its self-interests of salvaging the shaky corporation and maximising its profits,” it added in the statement.

Royal Pahang is a joint venture between Royal Pahang Durian Resources (RPDR) and the state goverment’s Perbadanan Kemajuan Pertanian Negeri Pahang (PKPP).

On June 24, Pahang awarded the company the lease and rights to 2,168ha of land in Raub for 30 years, with an option for another 30.

The firm was set up to purportedly curb encroachment on state land for the cultivation of durians. The state also contends that the durian farmers have been planting without a permit, and that a contract with the state-appointed middleman is a way to legalise their operations.

Samka last week protested against a contract with the firm that members said they were forced to sign.

The farmers, whose farms are in Kg Sg Ruan, Sg Chalit and Sg Klau have been granted an injunction to stay an eviction notice issued by the state. – AFP, September 3, 2020.