KUALA LUMPUR, Sept 3 — Durian farmers from Raub, Pahang have hit back at Royal Pahang Durian Resources PKPP Sdn Bhd’s (RPDR-PKPP) recent attempts to clarify a current land deal impasse, denying that some 300 farmers were prepared to tie themselves to a contract with the state-linked company.

A statement issued by the Save Musang King Alliance (Samka) clarified these 300-odd farmers, whom RPDR-PKPP had claimed as those who had registered and prepared to get onboard with their legalisation scheme, were merely attendees of a briefing by the corporation.

Samka said RPDR-PKPP’s further claim that 133 of these durian farmers had even paid RM1,000 as a testament of their commitment had only done so because they were under the impression it was payment for an ‘entry-permit’ into their per-acre of their land that was sealed-off.

“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 RPD,” read the statement.

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The statement today pointed out how farmers who paid the RM1,000 were also told the cash was reimbursable if they ultimately refused to sign onto the scheme, with Samka saying the existence of a refund policy itself voids RPDR-PKPP’s claim of farmers committing themselves.

"However, RPD now told the media that the farmers had agreed to the terms in the contract, even though the fact is that they merely made the payment for entry permits.

“It is crystal clear that RPD was trying to shamelessly deceive and mislead the public into believing that many farmers did not object the contract,” Samka alleged.

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RPDR-PKPP is a joint venture between the Pahang royalty-linked Royal Pahang Durian Group (RPD) and Pahang state government’s Perbadanan Kemajuan Pertanian Negeri Pahang (PKPP).

Prior to the disputed legalisation scheme, the Pahang state government early this year leased 5,357 acres of land to RPDR-PKPP for 30 plus 30 years, some of which were alleged to have been encroached by illegal farmers.

Under the legalisation scheme, RPDR-PKPP would sublease the land to the existing and allegedly illegal durian farmers and require them to sell the durians produced at a predetermined price to Royal Pahang Durian Export Sdn Bhd, also a subsidiary or RPD.

Farmers who did not comply were initially issued eviction notices.

The durian farmers under Samka have previously objected to the contract terms offered by RPDR-PKPP, describing it as exploitative and allegedly akin to driving the farmers into “modern slavery”.

However, the RDP Group rejected Samka’s allegations on August 21, telling Malay Mail that it is instead protecting the local durian industry from foreign players. It added that the legalisation scheme would ultimately lead to a win-win situation for the durian farmers, the state and the industry.

Samka today is responding to a statement issued by RPDR-PKPP on Tuesday, but have addressed references within their statement towards one of the venture’s parent companies, RPD.

Samka today also refuted RPDR-PKPP’s claim that farmers could still make a sizeable profit by selling their produce to the predetermined company at RM30/kg with a production cost of RM8/kg, saying the formulation of such numbers had exposed the joint-venture’s inexperience in the industry.

“Such a sloppy allegation further proved that the corporation did not actually know how to grow durians nor understand the farmers’ difficulties,” read the statement.

Samka also addressed a levy payment of RM6,000 per acre being imposed in farmers onboard the scheme for 2020, questioning if such requirements were made to shore up RPDR-PKPP’s own financial status.

The group pointed out how farmers will stand to make zero revenue for almost 10-years from when a durian seed is planted while having to fork out high production costs, then accusing RPDR-PKPP of just attempting to cash in and overlooking such factors.

The group included the amount of RM6,000 was decided after poor consideration of all the variables that can affect farmers’ revenue, adding that even if some farmers were successful and profitable, RPDR-PKPP should not be trying to exploit their income and burden them further.

Samka went on to claim that a check they had done with the Companies Commission of Malaysia also showed that RPDR-PKPP’s assertion of being financially sound was flawed.

“Based on the information stated in the SSM report, RPD only has a share capital of RM1 million, while recorded a loss of RM2.7 million and revenue of RM702.

“RPD’s shaky and perilous financial situation is therefore indisputable,” Samka claimed.

The farmer group also disputed RPDR-PKPP’s claim that the legalisation scheme will ensure all farmers obtain a Malaysian Good Agricultural Practices (MyGAP) certification as a requirement to export their durians to China, with Samka claiming such a certification was not needed if their fruits are sold locally or in Singapore.

They said if the Pahang state government was serious about ensuring MyGAP certification is obtained by all durian farms, state bodies should be able to handle such tasks on their own without intervention from a private corporation.

“The state government will just have to lease the land or grant land titles to the farmers in order for them to apply for MyGAP certification,” said Samka.

The farmers also added how they are ready to cooperate with the state government to assist in succeeding with its goals of creating a more sustainable and profitable durian industry in Pahang.

“This meaningful collaboration between the local farmers and the government will ensure that the environment and water source can be protected while the durian industry can contribute continuously to the economy of Raub as well as the entire Pahang state.

“Therefore, if the state government is sincere about protecting the environment, it should immediately engage the farmers and hold dialogues with them rather than select a private corporation as a middle-person that grabs commissions and offers an exploitative and unequal contract to the farmers,” the statement read.

On August 21, 111 durian farmers in Raub filed for a judicial review against six respondents including the Pahang government, PKPP and RPDR-PKPP, seeking to challenge the Pahang government’s decision to lease 5,357 acres of land to RPDR-PKPP as well as the order to the farmers to vacate the land.

The High Court in Kuantan had on August 28 ordered the Pahang government to suspend enforcement and eviction measures against the durian farmers until the case is decided, with the High Court scheduled to hear the farmer’s application for judicial review on October 28.

For more about the land dispute, read more here.