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 the...