KUALA LUMPUR: The government has tabled amendments to the Control of Padi and Rice Act 1994, giving the director-general powers to intervene in padi and rice prices to prevent market manipulation.
Deputy Agriculture and Food Security Minister Chan Foong Hin said the proposed amendments would allow the director-general, subject to the agriculture minister’s approval, to enforce minimum and maximum prices for padi and rice to curb market manipulation.
“The substantive amendment is an important intervention to curb any price manipulation,” he told the Dewan Rakyat when tabling the Control of Padi and Rice (Amendment) Bill 2026 for second reading on Thursday (July 9).
He said the Cabinet had approved the proposed amendments on Dec 10 last year, following the ministry’s review of the legislation.
Under the Bill, the director-general will be given specific powers under Section 4(2) of the Act to enforce minimum or maximum prices for padi or rice with prior approval from the minister.
The amendments also seek to raise general penalties for offences that currently carry no specific punishment, with fines for individuals increasing to a maximum of RM250,000 for a first offence and RM500,000 for repeat offences.
For companies, the maximum fine will increase to RM500,000 for a first offence and RM1mil for subsequent offences.
The Bill will also expand the minister’s powers to make regulations covering the licensing of padi buyers, the grading of rice, price controls for graded rice, and the regulation or prohibition of the physical movement of padi and rice to curb hoarding and smuggling.
Breaching such regulations may result in a fine of up to RM15,000, imprisonment of up to six months, or both.
Chan said the ministry had conducted a Regulatory Impact Analysis through the Malaysia Productivity Corporation, which recommended a post-implementation review within two years of the amendments taking effect.
He said the ministry had also held extensive consultations with industry stakeholders, including millers, wholesalers, retailers and consumer groups, as well as parliamentary select committees, to ensure the amendments were comprehensive and balanced.
“The drafting of this amendment Bill reflects the government’s full commitment to safeguarding the ecosystem of the national padi and rice industry.
“Through stronger enforcement powers and higher penalties, the government is sending a clear message that there will be no compromise with any party attempting to disrupt the stability of the nation’s staple food supply for personal gain,” Chan said.
