KUALA LUMPUR – The Agriculture and Food Security Ministry has denied allegations of the existence of a cartel or mafia that controls prices of rice and padi seeds in the country.
In a statement issued yesterday, the ministry clarified that the country’s rice industry was regulated by the Kawalselia Padi dan Beras (KPB) regulatory body (padi and rice monitor) through the Rice Control Act 1994 (Act 522).
According to this act, the ministry carries out regulatory activities through licensing and enforcement to ensure a healthy and orderly development of the rice industry.
“This act also grants powers to the director-general of KPB to issue licences and permits for padi and rice transactions – including manufacturing, wholesale, retail, import or export, and inter-state transfers,” the statement read.
The statement also mentioned that the issuance of 39,000 various licences, such as the wholesale rice licence, export licence, import licence, padi mill licence, padi purchase licence, retail rice licence, and special approvals to sell padi seeds for certified padi seeds, clearly indicates that there is no cartel or mafia capable of monopolising the rice industry.
“As for certified padi seeds, the ministry has allocated 72,000 metric tonnes of certified padi seeds to meet the needs of farmers for the year 2023.
“The manufacturing licence for certified padi seeds is also granted to government-linked companies to supply padi seeds to farmers. The confirmation of certified padi seeds through laboratory tests is carried out by the Agriculture Department,” the statement said.
Meanwhile, the Agriculture Ministry announced that it conducted the certified padi seeds operation task force from November 7 to 21 to ensure that all retailers sell certified padi seeds at government-set prices and there is no element of adulteration in certified padi seeds.
Through this operation, the ministry has revoked a total of 22 certified padi seeds sales licences held by retailers who violated licence conditions.
“The Agriculture Ministry warns all manufacturers, wholesalers, and retailers to always comply with the laws and will not compromise with any party attempting to take advantage of this issue.
“Firm action will be taken, including licence cancellation, if any legal violations are found,” the ministry said in the statement.
Farmers and consumers are also advised to submit complaints or information officially to the Agriculture Ministry if there are any legal violations through the KPB complaint portal at https://skpb.kpkm.gov.my/adu, by emailing [email protected], or by calling the hotline at 03-88701751/1748/1183.
Recently, Malaysian Rice Manufacturers Association chairman Marzukhi Othman was reported as claiming that a rice cartel or mafia monopolised by four to five large companies has existed for a long time, shaping the direction of the country’s rice industry and leading to prolonged issues of padi seeds every season and rice supply problems. – January 5, 2024