RPDG puts its trust in judicial process over tussle among farmers

ROYAL Pahang Durian Group (RPDG) awaits court decision on eviction notice by unlicensed farmers

The judicial review application brought about by unlicensed farmers against their eviction notice by the Pahang government and Royal Pahang Durian Group (RPDG) is still ongoing. The Kuantan High Court is set to finalize its decision on July 4, according to RPDG executive director Steven Mun Yung Kwun.

Mun acknowledges the ongoing legal process and refrains from commenting further on the matter. He puts his trust in the judicial process to arrive at a fair decision.

Earlier this year, the Save Musang King Alliance (Samka), representing unlicensed durian planters in Raub, stated that all contract terms should be carried out based on the agreement between them and Royal Pahang Durian Resources PKPP Sdn Bhd (RPDR-PKPP).

RPDR-PKPP, a joint-venture unit of RPDG and Pahang state’s Perbadanan Kemajuan Negeri Pahang, has been mandated by the state government to implement the land legalization scheme. This has led to opposition from the unlicensed farmers.

The farmers argue that free trade is essential to foster healthy competition, and the sale of durians to RPDR-PKPP should not involve any form of duress or arm-twisting.

According to a report in February, the farmers are willing to pay the land lease tax stipulated in the Pahang State Gazette 2019, as well as the annual fee for environmental preservation.

The farmers claim that the term sheet offered by RPDR-PKPP is exploitative and the fixed purchase price for durians is too low, suggesting that the private entity is solely focused on profits.

Mun argues that illegal encroachment accounts for less than 5% of the total area of durian plantations in Malaysia. With 4,450 hectares out of 91,728 hectares, building a profit-making monopoly is challenging.

“Furthermore, our business model is transparent, not a trade secret. We are open to other legalized players adopting it. If other states want to follow our successful legalized business model, we can even provide assistance and advice without interfering in their business,” says Mun.

Pahang, according to the Agriculture Department, produced the second-highest volume of durians in Malaysia last year, amounting to 122,300 tonnes. Johor topped the list with 139,000 tonnes.

Mun explains that RPDR-PKPP aims to make Malaysia a leading durian exporter. This involves implementing the state’s legalization program, establishing clear grading specifications, firm pricing, and ensuring consistent supply.

Ultimately, this strategy aims to penetrate the export market in China and other countries while promoting industry sustainability and safeguarding the local durian industry from foreign manipulation and dominance.

Citing a July 2022 report by China Insights Consultancy, Mun highlights that the market value of durians in China reached 52.4 billion yuan (RM34.1 billion) in 2021 and is expected to surpass 130.6 billion yuan (RM85 billion) by 2026.