Claims that a few large companies dominate the padi and rice industry to the extent of forming a cartel-like structure are unfounded, deputy agriculture and food security minister Arthur Joseph Kurup said today.
He said this conclusion was based on a Malaysian Competition Commission (MyCC) study on the industry, tabled at the Cabinet Committee Meeting on National Food Security Policy on Dec 17 last year.
“Based on the study, MyCC did not find any anti-competitive practices or any issues that contravene the provisions of the Competition Act 2010,” he said.
Kurup was responding to a question from Senator Abdul Nasir Idris, who had asked if the study, which concluded that there was no violation of the competition law, had considered the possibility of a handful of large companies exerting market dominance in a cartel-like structure.
Kurup also said that the ministry had been implementing phased reforms in the padi and rice industry since October 2024.
He said this included a review of the existing legal framework to ensure that it remains relevant and effective in regulating the industry.
“This review is important in addressing various issues that have recently plagued the sector, including ecosystem imbalances, allegations of supply manipulation through rice-mixing activities, and other related matters,” he said.
In response to a supplementary question from Nasir on creating a more competitive rice market, Kurup said that 52 companies producing various types and brands of rice were required to comply with regulatory controls and established standards, including certification schemes for padi seeds.
“The manufacturing, distribution, and production of rice must adhere to national standards set by the Malaysian Standard and Sirim Bhd.
“Rice quality assessments will be conducted through accredited laboratory testing, including ISO-certified laboratories operated by Padiberas Nasional Bhd,” he said.
