KUALA LUMPUR (March 14): The Malaysia Competition Commission (MyCC) has launched an investigation into cartel activities within the country's rice industry, Minister of Domestic Trade and Consumer Affairs Datuk Armizan Mohd Ali said.

This move comes in response to information and complaints received by MyCC from various parties, including the Padi and Rice Regulatory Division under the Ministry of Agriculture and Food Security.

"I can confirm that MyCC has commenced an investigation into the allegations of a rice cartel's existence, following the receipt of this information. The case will be investigated under the Competitions Act 2010," Armizan said in parliament while concluding the debate on the royal address on Thursday.

Previously, several news reports have suggested that rice cartels control over 60% of the country's rice production, resulting in issues concerning rice seedlings and supply.

The cartel has also faced accusations of involvement in unauthorised mixing of local and imported rice, which is prohibited under the law.

Presently, the country's rice industry is regulated by the Padi and Rice Regulatory Division through the Control of Padi and Rice Act 1994.

The Ministry of Agriculture and Food Security has refuted allegations of a cartel dictating rice and paddy seed prices in the country.

On Feb 14, Syed Abu Hussin Hafiz Syed Abdul Fasal, chairman of the National Cost of Living Action Council’s Food Prices Committee, announced the government's plan to introduce Malaysia Madani white rice priced at RM30 for a 10kg sack.

However, the Madani white rice initiative has raised concerns, with some arguing that it will only serve to benefit the cartel.

Prime Minister Anwar Ibrahim has directed the Ministry of Agriculture and Food Security to engage in further discussions with relevant stakeholders before presenting the findings to the Cabinet.

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