Local Rice Cartel Driving Shortages & High Prices Of Rice

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Local Rice Cartel Driving Shortages & High Prices Of Rice

17-Mar-2024
By Nick Dorian

All over the world, there are multiple cartels causing havoc for local authorities, usually in the form of narcotics. However in Malaysia, a different sort of organisation has emerged that may spell bad news for the general public.


Reported by Bernama, four to five local companies have now become involved in a local rice cartel which are acting to dominate the buying and selling of the product, which is leading to a shortage of the staple food within in the market as well as the high increase in its prices.


National Action Council on Cost of Living (Naccol) Task Force (Food Cluster) chairman Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal stated that the information was obtained through multiple engagement sessions with rice farmers, millers, wholesalers, retailers and consumers.


Hussin said that he will present the matter at the upcoming Naccol meeting on March 20 so that the government can take serious action against the companies involved. 


https://selangorjournal.my/wp-content/uploads/2023/09/FW1329134_SG19_214092023__BERAS_TEMPATAN-lpr.jpg.webp  

 "These companies control up to 80 per cent of the local rice market. The cartel buys rice at a high price of up to RM1,850 per tonne of rice and then raises the price of rice."


"In fact, some of these companies sell local rice in imported rice packages. This is a cartel action that causes an unstable ecosystem of rice and its prices," he told reporters after attending the Northern Zone Madani Activists Breaking Fast Ceremony at the Penang Golf Resort, here, last night.


Hussin, who is also the Bukit Gantang MP, said that the findings also showed that the cartel has been influencing rice farmers by offering higher rice prices and at the same time putting pressure on consumers with increased prices.


https://thesun.my/binrepository/ptj17-13032024-beras_3962811_20240316231120.jpg  

He also stated that he will be presenting a proposal to grant a subsidy of RM200 to rice farmers for every tonne of rice sold to millers at the upcoming Naccol meeting so that local rice can be sold at RM30 for a 10kg pack.


"The farmers want RM1,700 for each tonne of rice, but we dont want to consumers to be affected by high price."


"If it reaches RM1,700 (per tonne), the retail price of rice will be at RM35 per 10kg. However, the millers can only buy at RM1,500. So, I suggest that the government subsidise RM200 (per tonne of rice) so that rice can be sold at RM30 per 10kg bag," he said.


With rice being such a staple food for many households all over the country, we hope local authorities will begin to take steps to take these companies and cartels down so that prices will eventually fall, giving us the opportunity to fill our bellies and save some money along the way.

rice cartel inflation National Action Council on Cos Naccol Datuk Syed Abu Hussin Hafiz Sy


Nick Dorian

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