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Govt to investigate white rice supply cartel claims [NSTTV]

RAWANG: The government is not ruling out any possibility of certain parties controlling the supply of white rice which goes to certain supermarkets in the country.

In response to claims of alleged white rice cartels in the country, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the ministry was seriously reviewing the issue and will investigate the issue.

"I do not want to accuse anyone but we are seriously looking into the matter.

"The discussion between the Malaysian Competition Commission (MyCC) and the Padi and Rice Monitoring Office (on rice cartel allegations) is also ongoing and all necessary actions will be taken if there is any issue of misconduct.

"It is also not certain whether they are responsible or guilty and that will be decided by the regulatory council so we will wait for the investigation result," he said when met by reporters at a site visit in Rawang, today.

Previously, the Malaysia Bumiputera Rice Association claimed that feedback given from its members stated that there was no white rice supply from Padibernas Nasional Bhd (Bernas).

Its president Ismail Awang had also questioned the rice importer on the unavailability of white rice supply directly from Bernas, despite having it available at supermarkets.

Such a situation, he had said, had implied there was an alleged plot within Bernas and that the rice cartel issue was indeed true.

Following this, Mohamad said the government will also review the organisational structure of rice in the country which was last reviewed in 2008. .

"The system has been used since 2008 and it needs reevaluation. Hence, we will assess the organisational structure of rice in Malaysia."

Meanwhile, Bernas is currently the nation's sole rice importer and its concession agreement with the government has been extended twice, with the latest ending in 2031.

This means that Bernas concession agreement with the government would last for 35 years, with the latest concession starting from Jan 11, 2021, until Jan 10, 2031, worth RM2.316 billion.

Despite calls from certain quarters to revoke the concession agreement, Mohamad in Oct last year reportedly said that Bernas' role as the national rice importer in the country was still relevant to address the insufficient rice supply in the country.

On the same matter, Mohamad mentioned that the current issues in the country's rice and padi industry were still at the discussion stage between the Malaysian Competition Commission (MyCC) and the Padi and Rice Monitoring Office.

Following the discussion, he added, any punishments for those found guilty over rice cartel-related issues would be decided by the regulatory council.

"We are still not certain on who is responsible for (the cartel issue) or whether they are guilty.

"Similar to the egg and chicken issues in the country, any action to be taken will be decided by the regulatory council so we will wait for the investigation results."

Meanwhile, Mohamad said the ministry will also put more focus on the production of high-quality padi seeds in the country this year following the distribution of low-quality seeds towards farmers.

Acknowledging issues surrounding padi seeds in the country, he said the ministry will also come up with a plan to ensure that a high-quality seeds stockpile is sufficient and could last up to six months.

This, he said, was also part of the ministry's aim to ensure that the self-sufficiency rate (SSR) of padi and rice could reach 75 per cent this year, in line with the ministry's aim to improve and enhance the existing padi mechanism.

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