Four or five companies involved in rice cartel, says task force chief

KEPALA BATAS: There is a local rice cartel in existence involving four or five companies which controls the buying and selling of rice, leading to shortages and increase in prices.

National Action Council on Cost of Living (Naccol) task force (food cluster) chairman Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal said the information was obtained from engagement sessions with rice farmers, millers, wholesalers, retailers and consumers.

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

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

"In fact, some of these companies sell local rice in imported rice packages - this causes an unstable ecosystem of rice and rice prices," he told reporters after attending the Northern Zone Madani activists breaking fast ceremony at the Penang Golf Resort here on Saturday (March 16).

Syed Abu, who is also Bukit Gantang MP, said that the findings also showed that the cartel influenced rice farmers by offering higher prices for rice and at the same time, put pressure on consumers with increased prices.

He said he would also present a proposal to grant a subsidy of RM200 to rice farmers for every tonne of rice sold to millers so that local rice can be sold at a price of RM30 for a 10kg bag of rice. – Bernama