Collection centres set up to remove cartels from agri-food industry

SERDANG - More agri-food collection centres will be set up by the Agriculture and Food Industry ministry (MAFI) to reduce the influence of middlemen in distributing food items.

Its minister, Datuk Seri Dr Ronald Kiandee said middlemen or cartels have been manipulating food prices for profits.

"We now have 162 collection centres for the Farmers' Organisation Board (LPP), the Federal Agricultural Marketing Authority (FAMA) has 130 centres and the National Fishermen's Association (Nekmat) has 300 centres.

"We are going to increase the numbers (collection centres). We encourage online businesses to sell their products directly to consumers," he told reporters after officiating the Pre-Launch of the Malaysian Agriculture, Horticulture and Agro-Tourism Exhibition 2022 (MAHA 2022) at Malaysia Agro Exposition Park Serdang (MAEPS) today.

He said this to a question on measures taken by Putrajaya to curb the cartel industry or middlemen in the agro-food sector.

Commenting further, Kiandee acknowledged that the cartel issue is not new as it also exists in other sectors, including fisheries.

"We are looking at the cause and it has a wide range of forms like the relationship between middlemen and businesses," he added.

The ministry provides capital funds to businesses especially small businesses to ensure they do not rely on other financial resources, including from middlemen," he added.