Rice millers face price squeeze by importers, says council

The Malay Economic Action Council has called for a government review of the rice import monopoly and the padi and rice industry. (Reuters pic)

PETALING JAYA: Rice millers and wholesalers are complaining of being squeezed by a “rice import cartel” which has twice raised prices although retail prices are controlled, according to the Malay Economic Action Council.

The council, better known as MTEM, said the complaints had come from the Malay Rice Millers Association Malaysia and members involved in the wholesaling of rice.

MTEM chief executive director Ahmad Yazid Othman said rice imports were controlled by the agriculture and primary industries ministries and PadiBeras Nasional Berhad (Bernas).

“The wholesale price of rice that is resold by these cartels was increased by RM0.20 and now increased yet again by RM0.40,” he said.

However retailers could not increase market prices and are forced to bear a small profit margin.

MTEM called for an official explanation on whether rice is being imported every week to meet domestic demand, and whether Bernas had received a subsidy on rice imports as was the case in 2008.

Bernas, formed in 1996 when the National Padi and Rice Board was privatised, has sole rights to import rice until 2021.

Yazid urged the government to be fair in distributing rice to all wholesalers at a reasonable price. Large companies who have been enjoying a lot of privileges while making millions in profit before should not be taking advantage of other businesses.

“The rice industry must be managed and operated more transparently to ensure sustainability of the country’s food security, the country’s food sovereignty and also the economic safety of Bumiputera industry players,” he said.

“The time has come for the new government to review the paddy and rice industry,” he said. The monopolies only benefited one party and were no help for the rice supply chain from the farmers, millers, wholesalers and retailers.

“The Covid-19 crisis should not be manipulated to profit one party’s monopoly, but should be a lesson by the government to develop the full capacity of the country’s food security, and to equally develop all of the players in the industry, especially the farmers and small and medium enterprises,” he added.- FMT