Govt urged to combat price manipulation if ‘Madani white rice’ gets go-ahead

The proposal to replace the local white rice and imported white rice categories is set to be discussed at tomorrow’s Naccol meeting.

PETALING JAYA: Experts have urged the government to address potential manipulation, especially at the wholesale level, if it intends to proceed with the proposed “Madani white rice” category for consumers.

Citing concerns that international market dynamics could lead wholesalers to circumvent purchasing padi from local farmers, Shakirin Mispan of Universiti Malaya said price control mechanisms must be established to curb manipulation.

“Prices are still significantly influenced by our reliance on imported rice,” he told FMT.

Shakirin also voiced hope that the upcoming National Action Council on Cost of Living (Naccol) meeting would analyse the cost comparison between imported and local rice before implementing any policies, in order to create a win-win scenario for both farmers and consumers.

“If indeed the proposed single rice category policy is implemented, rice entrepreneurs need to clearly outline the percentage increase in income that can be provided to farmers,” he said.

“This increase should also alleviate the government’s subsidy burden on farmers. Entrepreneurs should be prepared to bear this subsidy if they insist on raising rice prices.”

The proposal to replace the categories of local white rice and imported white rice is set to be discussed at tomorrow’s Naccol meeting.

Last Saturday, agriculture and food security minister Mohamad Sabu said the government had yet to decide on introducing the “Madani white rice” category.

Mohamad said a recent statement on the issue by Naccol food prices committee chairman Syed Abu Hussin Hafiz Syed Abdul Fasal was “just his suggestion”.

Syed Hussin had said that the government would introduce “Madani white rice”, priced at RM30 per 10kg sack from March 1, which would be the sole category of white rice in the country, replacing the local white rice and imported white rice categories.

Fatimah Mohamed Arshad of Universiti Putra Malaysia agreed on the importance of addressing price-related policies before introducing a single rice category to replace the categories of local white rice and imported white rice.

“When the price of imported rice reaches RM3.50 per kg, local rice becomes unavailable in stores due to rice mixing practices. This means that the policy sets the price of local rice while allowing the price of imported rice to float, encouraging ‘illegal mixing’.

“So, the solution lies in price policies, not rice grades,” she said.

She added that proper grading was crucial for ensuring the quality of rice and maintaining fairness among farmers, protecting them from manipulation by buyers or manufacturers.