STUDY ON PADI AND RICE INDUSTRY STILL ONGONIG - KPKM

PUTRAJAYA, July 12 (Bernama) -- The Malaysia Competition Commission (MyCC) is still conducting  a study on the country’s padi and rice industry, including allegations of the existence of a cartel within it, according to the Ministry of Agriculture and Food Security (KPKM).

In a statement today, the ministry stressed that it will not interfere with any study conducted by MyCC and has given full cooperation by providing all information and feedback from time to time to the commission.

“KPKM reiterates that it will not protect any party found to be involved in the rice and padi cartel. If it is found that any party has committed an offence under the Competition Act 2010 (Act 712), we will not hesitate to take stern action under the Control of Padi and Rice Act 1994 (Act 522).

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“KPKM is still waiting for the findings from MyCC’s study and calls on all parties to refrain from making any speculation and leave the matter to MyCC for further action,” said KPKM.

This statement was issued in response to an article in an English newspaper yesterday, which, among other things, expressed hope that MyCC's study on cartel allegations would result in changes in the country’s rice industry in some major ways.

The statement also said that following the Executive Committee Meeting of the National Cost of Living Action Council (NACCOL) on March 19, KPKM has been asked to continue engaging with stakeholders to refine a long-term action plan for a more realistic rice production cost structure.

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“It is to ensure the sustainability of the padi and rice industry, particularly in protecting the welfare of padi farmers, safeguarding consumer interests, and increasing the productivity of the country’s rice production

The welfare of padi farmers remains a top priority for KPKM, with initiatives such raising the Padi Price Subsidy Scheme (SSHP) from RM360 to RM500, increasing the floor price for rice from RM1,200 to RM1,300 per tonne, improving the ploughing incentive from RM100 to RM160 per hectare per season, and introducing a harvesting incentive of RM50 per hectare.

KPKM also said that discussions with stakeholders are ongoing, and the ministry hopes to finalise proposals and details to find the best solutions for the padi and rice issue as directed by Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, on Feb 23, called for improved enforcement to ensure the availability of rice in the market and prevent wholesalers or manufacturers from making excessive profits.

--BERNAMA