LAWM 7400 LAW RESEARCH METHODOLOGY

1. PROPOSED RESEARCH TOPIC :

Unveiling the Allegations: Cartel Control and Price Manipulation in

Malaysia's Rice Industry

2. THE IMPOTANCE OF THE PROPOSED RESEARCH TOPIC :

a) The study can provide a foundation for strengthening legal frameworks

and ethical guidelines, ensuring that appropriate measures are in place to
address and penalize cartel activities in the rice industry.

b) Understanding the extent of cartel control and price manipulation helps

in developing measures to protect consumers from artificially inflated prices,
ensuring access to affordable and essential food items.

c) Shedding light on cartel activities promotes transparency in the rice

market, facilitating fair competition and preventing monopolistic practices
that may distort market dynamics.

d) Investigating the impact on rice farmers allows for the development of

policies that support sustainable agricultural practices, ensuring the
well-being of farmers and the long-term health of the agricultural sector.

e) Insights from the research can guide policymakers in refining and

implementing effective regulatory measures to curb cartel activities,
fostering a more competitive and equitable business environment.

f) The study can provide a foundation for strengthening legal frameworks

and ethical guidelines, ensuring that appropriate measures are in place to
address and penalize cartel activities in the rice industry.

3. THE STATEMENT OF PROBLEM BASED OF THE PROPOSED RESEARCH

TOPIC :

a) According to Coalition of Rice Millers Malaysia, a handful of major

companies are involved in controlling padi mills, seed production, and
setting prices, allegedly disregarding government directives.

b) The existing system that offer padi companies to having multiple license
whether a padi mill licence and a seed production licence.

c) In 2023, Farmers particularly the 71,000 under the Muda Agricultural

Development Authority (Mada), who reportedly face losses of up to RM40
LAWM 7400 LAW RESEARCH METHODOLOGY

mil per season due to delayed cultivation caused by a shortage of padi

seeds.

d) Situation of fraud when it is announced that the price of imported rice is

getting more expensive and out of control, the cartel will convert the local
rice stock into imported rice.

e) Another of modus operandi of the cartel is that uses broken rice as local rice
as it could be sold at uncontrolled price.

f) However, the Agriculture and Food Security Ministry has denied allegations
of the existence of a cartel or mafia that controls prices of rice and paddy
seeds in the country as the country's rice industry was regulated by the
Kawalselia Padi dan Beras (KPB) regulatory body through the Rice Control
Act 1994 (Act 522).

4. PROPOSED THE SOLUTION OF THE PROBLEM :

a) Review the Rice Control Act 1994 (Act 522) to identify areas that may
require amendment or enhancement to address the evolving challenges in
the rice industry.

b) Review and revise the existing licensing system to ensure that padi
companies cannot hold multiple licenses, thereby preventing concentration
of power and control.

c) Enhance the powers and resources of the Kawalselia Padi dan Beras (KPB)
regulatory body to effectively monitor and regulate the rice industry.

d) Collaborate with law enforcement agencies to ensure effective enforcement

of regulations and legal measures against entities engaging in cartel
practices

5. HYPOTHESIS :

a) There is a significant presence of cartels influencing various aspects of the

industry, including padi mills, seed production, and pricing.

b) Despite the denial by the Agriculture and Food Security Ministry, the
research aims to uncover the extent of cartel activities, assess their impact
on the market, and contribute to the development of effective regulatory
measures to address and penalize such practices.
LAWM 7400 LAW RESEARCH METHODOLOGY

c) There is also the need for reform in the existing licensing system for padi
companies and prompt the establishment of stronger legal frameworks and
ethical guidelines to safeguard the interests of farmers, consumers, and the
overall sustainability of the rice industry in Malaysia.