The agriculture and food security ministry said the court announced the decision on Monday after Kilang Beras Seng Wor Sdn Bhd pleaded guilty to selling 250kg of broken rice to an unlicensed party.

The company was also fined for a 10,593.70kg discrepancy in the quantity of broken rice it recorded with its physical stock in possession.

The charges were framed under the Rice Control Regulations (Wholesaler and Retailer Licensing) 1996 and Control of Padi and Rice Act 1994.

The court imposed a RM7,000 fine for the first charge and a RM5,000 fine for the second. The company’s seized assets valued at RM25,000 were forfeited to the government.

In a statement, the ministry said its task force conducted a check of inventory at the company’s business premises in Kota Sarang Semut, Kota Setar, on Oct 7 following a tip-off from the public.

The factory was suspected to have committed both offences, and the Kedah paddy and rice supervision enforcement division seized 10,593.70kg of broken rice.

The ministry also reminded millers, rice wholesalers, and retailers to comply with the Control of Padi and Rice Act, warning that strict action would be taken against licence holders who fail to comply.