The Malay Rice Millers’ Association (PPBMM) has urged the government to set rice purchase quotas for large mills that allegedly have monopolised the rice production industry in the country.
Its chairman Mohamad Termizi Yob claimed that the monopoly of large-scale rice mills not only affected smaller producers, who are mostly Bumiputera, but it was also one of the factors contributing to the current increase in rice prices.
“There is no purchase quota for each rice mill. So if it is not controlled, large-scale rice mills will purchase more, resulting in a monopoly.
“The large mills pay brokers high incentives of between RM150 and RM200 per tonne, which also leads to an increase in rice prices,” he told reporters here today.
He also claimed that the transportation of paddy between states as a result of the monopoly contributed to the increase in rice production costs.
As a result, he said small-scale mills have been unable to compete, forcing them to cease operations.
Mohamad Termizi further claimed that there are currently only ten Bumiputera-owned mills operating in the country, compared to 103 mills previously, and they account for only about 200,000 tonnes of rice, or less than 10 per cent of the annual production of 1.73 million tonnes.
“The high cost of rice supply makes it difficult for small wholesalers to compete in the national retail rice market,” he said.
Meanwhile, Mohamad Termizi suggested that the government appoint or authorise Bumiputera-owned mills to supply rice for the national rice stockpile instead of importing it.
Source: BERNAMA News Agency
