PETALING JAYA: A group of rice millers want the Malaysia Competition Commission (MyCC) to act against cartels in the rice industry just like it did recently with a cartel of companies found guilty of fixing chicken feed prices.
The Bumiputera Small Millers Association (PPBMM) and the Malay Economic Action Council (MTEM) said in a joint statement that monopolies in the rice industry were making supply problems worse.
MTEM senior fellow Ahmad Yazid Othman said that following MyCC's recent action of fining five companies of RM415mil for forming a cartel to fix the price of chicken feed, it showed that such cartels existed and were not exempt from the rice industry.
"We urge MyCC to take similar action against cartels that have intentionally created rules to eliminate small players in the rice industry that have been obscured by the Control of Padi and Rice Act 1994 (Act 522)," he said in a statement on Wednesday (Jan 10).
With only 10 Malay-operated rice mills in Malaysia remaining with the numbers decreasing, Ahmad Yazid questioned if the government was protecting large producers who have been seen "monopolising" the supply of rice nationwide.
"There is no longer enforcement through rice mill licenses to regulate and harmonise the local rice market.
"If this situation continues without enforcement, it will undoubtedly strengthen these rice cartel monopolies and control the national rice industry.
"The difficulties facing the people in obtaining supplies of local white rice now is evidence of the control these cartels over the rice market in the country," he said.
Ahmad Yazid said it was saddening to see how Malaysians have been affected by the current rice prices.
He also highlighted the extremely low participation of Malay wholesalers in rice mills, of which less than 10% are active, calling for the government's attention.
"The main reason why Malay wholesalers could not operate at present compared to 10 years ago is the difficulty in obtaining local and imported rice supplies.
"Rice mills are reluctant to sell rice to Malay wholesalers, even though the ministry intervened by telling padi millers and rice wholesalers to increase the rice production quota by 20% following a sudden increase in rice prices from the middle of last year."
Ahmad Yazid also said that after the privatisation of the National Padi and Rice Board (LPN) which was since replaced by Padiberas Nasional Berhad (Bernas), there had been no more room for the Malay mills in the national rice industry, as well as programmes and incentives.
He added all the above had been neglected by the ministry.
On last Dec 22, MyCC said five companies were fined a total of RM415mil for infringing Section 4 of the Competition Act 2010 by forming a cartel to fix the price of chicken feed.
The five companies are Dindings Poultry Development Centre Sdn Bhd, FFM Berhad, Gold Coin Feedmills (Malaysia) Sdn Bhd, Leong Hup Feedmill Malaysia Sdn Bhd and PK Agro-Industrial Products (M) Sdn Bhd.
They were fined RM70mil, RM42mil, RM97mil, RM157mil and RM47mil respectively.
