KPKM denies presence of cartel, mafia controlling prices of rice, paddy seeds

KUALA LUMPUR, Jan 5: The Ministry of Agriculture and Food Security (KPKM) has denied allegations of the existence of a cartel or mafia that controls prices of rice and paddy seeds in the country.

In a statement today, KPKM clarified that the country’s rice industry was regulated by the Kawalselia Padi dan Beras (KPB) regulatory body through the Rice Control Act 1994 (Act 522). According to this act, the ministry carries out regulatory activities through licensing and enforcement to ensure a healthy and orderly development of the rice industry.

“This act also grants powers to the Director-General of the KPB to issue licences and permits for padi and rice transactions, including manufacturing, wholesale, retail, import or export, and inter-state transfers,” the statement read.

The statement also mentioned that the issuance of 39,000 various licences, such as wholesale rice licence, export licence, import licence, paddy mill licence, paddy purchase licence, retail rice licence, and special approvals to sell paddy seeds for certified paddy seeds (BPS), clearly indicates that there is no cartel or mafia capable of monopolising the rice industry.

“As for BPS, KPKM has allocated 72,000 metric tonnes of BPS to meet the needs of farmers for the year 2023.

“The manufacturing licence for certified paddy seeds (BPS) is also granted to government-linked companies (GLCs) to supply paddy seeds to farmers. The confirmation of BPS through laboratory tests is carried out by the Malaysian Department of Agriculture,” according to the statement.

Meanwhile, KPKM announced that it conducted the BPS Operation Task Force from Nov 7 to 21 in an effort to ensure that all retailers sell BPS at the government-set prices and there is no element of adulteration in BPS.

Through this operation, KPKM revoked a total of 22 BPS sales licences held by retailers who violated licence conditions.

“KPKM warns all manufacturers, wholesalers, and retailers to always comply with the laws and will not compromise with any party attempting to take advantage of this issue. Firm action will be taken, including licence cancellation, if any legal violations are found,” according to the statement.

Farmers and consumers are also advised to submit complaints or information officially to KPKM if there are any legal violations through the KPB complaint portal at or or through the hotline 03-88701751/1748/1183.

Earlier, the Chairman of the Malaysian Rice Manufacturers Association, Marzukhi Othman, was reported as claiming the existence of a rice cartel or mafia monopolised by four to five large companies for a long time, shaping the direction of the country’s rice industry, leading to prolonged issues of paddy seeds every season and rice supply problems.