ALLEGATIONS of cartels operating in the rice industry are not uncommon. As quickly as the allegations are made, they are denied by the authorities. But cartels aren’t the only problem for the rice industry.
Our staple diet industry has numerous other issues.
We will soon know the gamut when the Malaysia Competition Commission (MyCC) completes its farm-to-fork study, estimated to be completed by the end of September.
To date, more than 150 people with interests in the industry have been interviewed.
By the time the study is completed, seed distributors, fertiliser suppliers, equipment providers, farmers, grain collectors, millers, wholesalers and retailers are expected to be interviewed.
To our knowledge, this is the first time the entire rice supply chain is under the microscope of any one authority, though other studies of similar nature were conducted for a limited purpose. What has come of them remains a mystery.
MyCC isn’t ready to divulge more, as there are still some grounds to cover over the next 2½ months.
We are glad that, finally, our regulators have started to pin down the industry’s issues for good. Problems abound throughout the supply chain, and it is about time the fog is cleared.
Consider the farmers, without whom the rice industry wouldn’t exist. When prices rise — they do every once in a while — consumers tend to put the blame on the farmers.
The truth is, not much of what consumers pay retailers goes to the purses of farmers. The extra money just doesn’t make it to the farm gate. Call it a loss in transition. The MyCC study must not miss the reason why this happens.
MyCC’s boots on the rice fields will surely help uncover this. Farmers’ wellbeing is as important as rice supply.
If we do not ensure that the farmers get what they justly deserve, they will soon begin to hang up their hoes.
Malaysia has been revising its self-sufficiency level from around 90 per cent in the 1960s downward to about 65 per cent today.
The rest is imported, mainly from Thailand, Vietnam, Pakistan and India. Importing rice comes with its own dangers, but that is a Leader for another time.
The rice bowl is rapidly shrinking. Something urgently needs to be done before our food security is threatened. And no “eat tapioca” advice, please.
We hope the MyCC study brings change to the rice industry in some major ways. The laments from everyone on the farm-to-fork spectrum are decades old.
We have just ambled along, problems and all. Will this time be any different? We sure hope so.
Understandably, Malaysians will be pinning their hopes on the MyCC study to cure some of the industry’s ailments, if not all.
But quick fixes are the last thing on MyCC’s mind, we are told. Expect the cure to come in three buckets: immediate, medium and long term.
Given that the issues that the industry is up against aren’t just restricted to anti-competition, the ambit of MyCC, issue buckets may get passed on to other agencies.
But the signal coming out of MyCC is that, with a few exceptions, many across the supply chain need to buck up. Not surprising. Like rice, complacency has become a staple diet.
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