“We have not initiated any investigation against any party in this industry and we have yet to receive any information from any party, particularly the padi and rice regulatory division under the agriculture and food security ministry,” it said in a statement.
The commission, however, confirmed that it would be meeting the division on Jan 19.
“MyCC would like to emphasise that we have written to the division in October 2023, expressing our readiness to understand and discuss the issues surrounding the padi and rice industry in order for us to provide our input relating to any competition concerns, if any.”
Earlier today, Utusan Malaysia reported that the division would be having a meeting with MyCC on Jan 19 to promptly investigate allegations of a cartel affecting rice farmers.
The daily quoted the division’s director-general, Azman Mahmood, as saying that there would be legal action if it was found that padi, rice or padi seed licence holders failed to comply with stipulated conditions or if they violated the regulations.
MyCC urged all parties, especially the media, to exercise caution and “stop making speculations”.
“This is especially since the government has issued a formal statement on Jan 4 stating that based on their findings, there are no issues on competition relating to the padi and rice industry,” MyCC said.
On Jan 4, the agriculture and food security ministry denied the existence of a cartel that controlled the prices of rice, padi and padi seedlings.
The ministry said 39,000 various kinds of production licences had been issued for the rice production sector, ranging from import or export permits to licences to purchase or process padi.
“This clearly shows no cartel or ‘mafia’ can exist that would be capable of monopolising the rice and padi industry,” it said.
Previously, the Coalition of Rice Millers Malaysia claimed that rice cartels controlled over 60% of the country’s rice production, causing issues with padi seedlings and the supply of rice.
Its chairman, Marzukhi Othman, claimed that four to five major companies were involved in controlling padi mills, wielding considerable influence in setting the prices for padi, rice and padi seeds.