According to Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal, the chairman of the National Action Council on Cost of Living (Naccol) task force, there is a local rice cartel comprising of four or five companies that manipulate the buying and selling of rice, resulting in shortages and price hikes.
During engagement sessions with various stakeholders, including rice farmers, millers, wholesalers, retailers, and consumers, this information was brought to light.
Syed Abu plans to bring up this issue at the upcoming Naccol meeting on March 20, urging the government to take action against the companies involved in this cartel.
He revealed that these companies have a stronghold on up to 80% of the local rice market. The cartel purchases rice at inflated prices, up to RM1,850 per tonne, and further increases the price for consumers.
Moreover, some of these companies are packaging local rice in imported rice packaging, disrupting the stability of the rice ecosystem and prices, as mentioned by Syed Abu during a press conference.
Furthermore, the findings indicated that the cartel is influencing rice farmers by offering higher prices for their produce while simultaneously pressuring consumers with inflated prices.
In response to this situation, Syed Abu, who is also the Bukit Gantang MP, intends to propose a subsidy of RM200 for rice farmers for every tonne of rice sold to millers, enabling local rice to be sold at a more affordable price of RM30 for a 10kg bag.
These measures are aimed at addressing the issues of price manipulation and shortage caused by the rice cartel, ultimately benefiting both the producers and consumers in the local rice industry. – Bernama
