KUALA LUMPUR, Jan 4 — The Agriculture and Food Security Ministry (MAFS) has denied allegations concerning the supposed existence of a cartel or mafia controlling the rice and paddy seeds prices nationwide.
It said Malaysia’s rice industry is regulated by the regulatory body Kawalselia Padi dan Beras (KPB), via the Rice Control Act 1994 (Act 522).
According to this Act, the ministry carries out regulatory activities through licensing and enforcement to ensure the rice industry’s healthy and orderly development.
“This Act also grants powers to the KPB Director-General to issue licences and permits for padi and rice transactions, including manufacturing, wholesale, retail, import or export, and inter-state transfers,” MAFS said in a statement today.
It added the issuance of 39,000 various licences, including for wholesale rice, export, import, paddy mills, paddy purchases, retail rice, and special approvals to sell paddy seeds for certified paddy seeds (BPS), is a clear indication that such a cartel or mafia capable of monopolising the rice industry exists.
“As for BPS, MAFS allocated 72,000 metric tonnes of BPS to meet the needs of farmers for 2023.
“The manufacturing licence for certified paddy seeds (BPS) is also granted to government-linked companies (GLCs) to supply paddy seeds to farmers. The confirmation of BPS through laboratory tests is carried out by the Malaysian Agriculture Department,” it said.
Meanwhile, MAFS announced that it conducted the BPS Operation Task Force from November 7 to November 21 last year to ensure all retailers sell BPS at government-set prices and to prevent instances of adulteration.
Through the operation, the ministry revoked 22 BPS sales licences held by retailers who violated licence conditions.
“MAFS warns all manufacturers, wholesalers, and retailers to always comply with the laws, as it 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,” it said.
Farmers and consumers are also advised to submit complaints or information officially to MAFS concerning any legal violations via the KPB complaint portal at https://skpb.kpkm.gov.my/adu or [email protected], or through the hotline 03-88701751/1748/1183.
Earlier, Malaysian Rice Manufacturers Association chairman Marzukhi Othman claimed the existence of a rice cartel or mafia, dominated by four or five large companies for many years, has shaped the direction of Malaysia’s rice industry.
This, in turn, has led to prolonged issues of paddy seeds every season and rice supply problems.
— Bernama
