Mydin boss suggests millers of hoarding local rice, fuelling shortage
KUALA LUMPUR, March 10 — Rice millers appeared to be hoarding local white rice (BPT) to manipulate supply and are demanding cash payments from retailers in the wake of the resulting shortage, said Datuk Ameer Ali Mydin.
Speaking as the president of the Bumiputera Retailers Association, the Mydin Holdings managing director questioned why BPT, which had been scarce for two years, suddenly became available after the government allocated RM150 million in subsidies.
He said it was curious that supply could improve so quickly, and suggested millers were taking advantage of the ongoing shortage to gain leverage over retailers, forcing them to accept unfair payment terms.
'Millers are using their power to control supply, telling retailers they must pay cash upfront if they want local rice,' Ameer was quoted as saying in an Utusan Malaysia report.
Previously, supermarkets could purchase rice on credit with a 30-day payment term, a practice that still applies to imported rice but has been revoked for BPT.
Ameer argued that such cash-only demands disrupt operations, as supermarket chains require warehouse processing and multi-level approvals before making payments.
The industry veteran accused millers of playing games, saying they are taking advantage of shortages to change business terms in their favour.
He pointed out that suppliers are delivering only 50 to 100 bags per store per week, when supermarkets require at least 500 bags daily to meet customer demand.
Ameer then urged the Ministry of Domestic Trade and Cost of Living (KPDN) to intervene by facilitating discussions between supermarkets and millers.
Ameer suggested that KPDN should set clear supply quotas, ensuring each supermarket receives a fixed number of rice bags per month, rather than leaving distribution to millers' discretion.
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KUALA LUMPUR, March 10 — Rice millers appeared to be hoarding local white rice (BPT) to manipulate supply and are demanding cash payments from retailers in the wake of the resulting shortage, said Datuk Ameer Ali Mydin. Speaking as the president of the Bumiputera Retailers Association, the Mydin Holdings managing director questioned why BPT, which had been scarce for two years, suddenly became available after the government allocated RM150 million in subsidies. He said it was curious that supply could improve so quickly, and suggested millers were taking advantage of the ongoing shortage to gain leverage over retailers, forcing them to accept unfair payment terms. 'Millers are using their power to control supply, telling retailers they must pay cash upfront if they want local rice,' Ameer was quoted as saying in an Utusan Malaysia report. Previously, supermarkets could purchase rice on credit with a 30-day payment term, a practice that still applies to imported rice but has been revoked for BPT. Ameer argued that such cash-only demands disrupt operations, as supermarket chains require warehouse processing and multi-level approvals before making payments. The industry veteran accused millers of playing games, saying they are taking advantage of shortages to change business terms in their favour. He pointed out that suppliers are delivering only 50 to 100 bags per store per week, when supermarkets require at least 500 bags daily to meet customer demand. Ameer then urged the Ministry of Domestic Trade and Cost of Living (KPDN) to intervene by facilitating discussions between supermarkets and millers. Ameer suggested that KPDN should set clear supply quotas, ensuring each supermarket receives a fixed number of rice bags per month, rather than leaving distribution to millers' discretion.
