Rice Law Overhaul: Maximum Fine Raised To RM1 Million Under Proposed 2026 Amendments

The Control of Padi and Rice Act (Amendment) Bill 2026 was tabled for its first reading in the Dewan Rakyat on Tuesday, proposing wider powers for the government to regulate rice prices and tougher penalties for offences under the law.

Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the bill would also be tabled for its second and third readings during the current Dewan Rakyat sitting.

The proposed amendments to Act 522 involve five key clauses, including changes to penalty provisions and greater authority over price controls for padi and rice.

Under the proposed amendments to Section 22, the maximum fine for individuals, including directors or officers of a company, would increase from RM15,000 to RM250,000 for a first offence. For a second or subsequent offence, the penalty would rise from RM25,000 to RM500,000.

For companies, the proposed amendments would increase the maximum fine from RM25,000 to RM500,000, while repeat offences could attract fines of up to RM1 million.

The bill also seeks to empower the director general, with prior approval from the Minister, to enforce maximum or minimum prices for padi or rice.

It further proposes giving the Minister authority to prescribe rice grades, introduce price controls for graded rice and regulate the movement of padi and rice through new regulations.

According to the bill, regulations under Act 522 may also classify certain acts or omissions as offences, carrying penalties of fines up to RM15,000 or imprisonment of up to six months, or both.

The amendments also include transitional provisions to ensure any ongoing investigations or proceedings before the law takes effect will continue under the existing Act.

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