Mixing Of Local Imported Rice Going On For Decades Says Ministry

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The agriculture and food security ministry said the government is fully committed to investigating the shortage of local white rice in markets.
PETALING JAYA: The practice of mixing local and imported rice to sell it at higher prices has been around for the past 50 years, according to the agriculture and food security ministry.
In a statement, the ministry said a study conducted by the Malaysian Competition Commission (MyCC) last year found such activity has been going on since the 1970s, with no action taken on the matter since then.
“After taking into account the views of farmers, consumers, and the industry, the government has now decided to take the responsibility to regulate this practice,” the ministry said.
“The government is fully committed to investigating the shortage of local white rice in markets and the alleged mixing of rice by identifying and introducing new technology to detect the mixing of rice using DNA fingerprinting.”
The ministry said that based on evidence obtained from the use of this technology, it found that the Control of Padi and Rice Act and its subsidiary legislation did not provide clear provisions to prosecute those involved in the practice of rice mixing.
It explained that the ceiling price of local white rice has been set at RM2.60 per kg since 2008, when the padi floor price was around RM750 per metric tonne.
After 17 years, the minimum purchasing price for one tonne of rice has been adjusted twice, to RM1,200 in 2014 and RM1,300 in 2024, with the most recent adjustment, effective from Feb 16, 2025, set at RM1,500.
However, the ceiling price of local white rice remains unchanged.
“In this situation, farmers want higher rice prices to increase their income, while rice millers and wholesalers want to maintain their profit margins, and consumers seek rice priced at RM26 for 10kg,” the ministry said.
“As a result, there is an imbalance in the industry as every adjustment of the padi floor price, without a corresponding review of local white rice ceiling price, could result in rice producers unable to cover their production costs, which ultimately affects the supply of local white rice in the market.”
The ministry said it has initiated major reforms in the country’s rice and padi sector in phases since October 2024 to obtain a “win-win” solution for farmers, industry players, and consumers.
Among the steps taken are restructuring governance measures to avoid conflicts of interest, reviewing the Control of Padi and Rice Act, establishing the Malaysian Agrofood Regulatory and Enforcement Agency, and empowering the Malaysian Agricultural Research and Development Institute to identify rice varieties through DNA technology.
The ministry said the government is also offering a subsidy of around RM150 million to maintain the price of local white rice at RM2.60 per kg, which is aimed at helping low-income groups access rice at an affordable price, thus reducing their cost of living.
“The ministry hopes that these steps will receive support from all parties to ensure the country’s rice industry remains sustainable, and rice supply remains stable and affordable.” - FMT

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