Govt denies existence of cartel controlling rice production

 

Earlier today, the Coalition of Rice Millers Malaysia claimed that rice cartels controlled over 60% of the country’s rice production, causing issues with rice seedlings and the supply of rice.

PETALING JAYA: The agriculture and food security ministry has denied the existence of a cartel that controls the prices of rice, padi and rice seedlings.

The ministry said 39,000 various kinds of production licences have been issued for the rice production sector, from import or export permits to licences to purchase or process padi, among others.

“This clearly shows no cartel or ‘mafia’ can exist that would be capable of monopolising the rice and padi industry,” it said in a statement.

Earlier today, the Coalition of Rice Millers Malaysia claimed that rice cartels controlled over 60% of the country’s rice production, causing issues with rice seedlings and the supply of rice.

Its chairman, Marzukhi Othman, claimed that four to five major companies were involved in controlling padi mills, which included seed production.

He also claimed these cartels wielded considerable influence in setting the prices for padi, rice and padi seeds.

The ministry said it had allocated 72,000 tonnes of certified padi seed to meet the needs of padi farmers in 2023.

The licence to manufacture these seeds was given to GLCs to ensure farmers would be supplied with the seedlings, it added.

“To ensure that all retailers selling certified padi seed follow the price set by the government and that there is no hoarding, an operation was held from Nov 7 to Nov 21.

“During that period, the ministry retracted 22 licences to sell certified padi seed due to breaches in the licensing conditions,” it added.

The ministry reminded manufacturers, wholesalers and retailers to follow existing laws, warning that it will not compromise with any party that seeks to take advantage of the sector. - FMT