“Cartel” sells subsidized rice seeds for 60 yuan, making 33 yuan per bag
(Petaling Jaya, 16th) Datuk Azman, Director-General of the Rice and White Rice Regulatory Authority under the Ministry of Agriculture and Food Security, revealed that the price of legal rice seeds (BPS) is RM56 per 20kg bag after being subsidized by the government. The price is RM20.60, but the monopoly cartel sells rice seeds to farmers at RM58 to RM60, making a profit of RM33 per bag.
He said that the cartel problem actually involves the entire agricultural field. In the rice and rice industry, the “cartel” obtains huge profits by obtaining subsidies for fertilizers and rice seeds from the government and then selling them to farmers at higher prices. .
MyCC launches investigation
He said that the Malaysian Competition Commission (MyCC) has now intervened to investigate the Malaysian rice and rice industries to confirm whether there is cartel behavior.
He said that the annual production of rice seeds can reach 72,000 tons to meet the domestic sales demand in West Malaysia, and the total annual government subsidy reaches 3 billion ringgit.
Che Ani, chairman of the Farmers Action Committee of the Muda Agricultural Development Agency (MADA), believes that one of the reasons why the “cartel” phenomenon has still existed in the agricultural field for many years and cannot be eradicated is the interference and political influence of “insiders”.
“The government should provide rice seed subsidies directly to farmers, which can force rice seed producers to compete to produce high-quality rice seeds and sell them at competitive prices.”
Abdul Rashid of the Rice Growers Association (PeSAWAH) pointed out that the formation of a cartel requires certain monopoly conditions, which means that only a few parties can become rice seed suppliers and sell them to farmers.
He said the existence of the cartel has become more evident since the privatization of the National Rice Board (LPN) in 1994. He gave the example that West Malaysia needs about 70,000 to 72,000 tons of rice seeds every year, but some rice seed manufacturers have applied for subsidies of 100,000 tons of rice seeds.
“Originally, 70,000 tons is enough to meet the needs of farmers, but the application amount of 100,000 tons is unreasonable. It is obvious that there are other interests involved.”
Farmer Zaharie (57) said the cartel controlled the supply of high-quality rice seeds and then sold them at high prices, sometimes reaching RM60 per 20kg bag.
“Demand is high now, but there is a shortage of rice seeds, so farmers are forced to buy at high prices.”
However, the president of the Malaysian Bumiputra Rice Mills Association (PPBMM) Mohd Tamiz said that the rice seed subsidies provided to farmers by the National Farmers Organization (NAFAS) did not appear to be excessive. Instead, he accused some farmers of He no longer operates rice fields, but still tries to profit from them.
“Some farmers no longer operate their rice fields, whether because they were sold, renovated, or no longer suitable for growing rice, but their names are still on the fertilizer subsidy list.”
When Prime Minister Datuk Seri Anwar opened the Malaysian Agriculture, Horticulture and Agri-Tourism Expo 2024 (MAHA2024) on September 14, he emphasized that the bad cartel monopoly habits in the country’s agricultural field must be stopped immediately.
He said that Malaysian agriculture has an optimistic future and will undergo major transformational reforms in the next one or two years. He also urged the Ministry of Agriculture and Food to promote the development of the agricultural sector through new technologies as the food industry is one of the key pillars that should be fully focused on at the moment.
