KUALA LUMPUR: The government is giving the assurance that there will be no more drastic chicken price increase after the chicken price subsidy and control measures were withdrawn effective Nov 1, said Agriculture and Food Security Minister Datuk Seri Mohamad Sabu .
He said this was because traders are selling chicken below the ceiling price of RM9.40 per kilogramme (kg) set in February 2022 apart from getting the assurance of suppliers that the supply of the protein source would be adequate now and in future.
“As such, we are confident the floating of chicken price would not lead to a price spike and if there is a major price hike, we want to know why as there is sufficient supply.
“Price increase when supply is low, now the suppliers have assured there is enough chicken and if there is a shortage, we are on standby to bring in more from overseas immediately,” he told a media conference here today.
Earlier, Mohamad said the rational to terminate wholesale subsidy is to reduce subsidy leakages enjoyed by foreigners and high-income groups.
Also present at the press conference were Deputy Agriculture and Food Security Minister Chan Foong Hin, Treasury secretary-general Datuk Johan Mahmood Merican and Domestic Trade and Cost of Living Ministry secretary-general Datuk Mohd Sayuthi Bakar.
Mohamad explained that the termination of chicken subsidies also took into account the current supply and price trends, with farm prices and production costs beginning to stabilise, leading to the current market prices being below the ceiling price.
In this regard, he said the government would ensure the sale price of chicken, once floated, remains at a reasonable rate.
“The government is expanding access to chicken supplies through continuous Agro MADANI and Rahmah Sales programmes nationwide to provide options and assurance to the people to obtain chicken at reasonable prices and below the current ceiling price.
“Through an engagement session with industry players on Oct 22, 2023, the government secured commitments from the industry to ensure that farmgate prices of chicken will not increase significantly and burden consumers,” he said.
Mohamad said the Domestic Trade and Cost of Living Ministry would implement monitoring and enforcement through the Price Control and Anti-Profiteering Act 2011 to ensure there are no excessive profit-taking activities and price manipulation by irresponsible parties at the retail level.
He said the government would continue to collaborate with all stakeholders to ensure the supply and prices of chicken at the farms remain stable and not burden the people and there are no profiteering activities along the supply chain.
“The government will continue to focus on strengthening the poultry farming industry through incentives to small- and medium-sized breeders and micro-credit schemes as working capital assistance for community breeders as well as the transformation programme of open chicken coops to closed chicken coops.
“These measures will provide an improvement in terms of supply access directly from community breeders to wholesalers in the market,” he said.
Meanwhile, Johan said that by ending chicken subsidies, the government could save about RM100 million a month.
When tabling the Budget 2024 on Oct 13, Prime Minister Datuk Seri Anwar Ibrahim announced that the temporary price controls for eggs and chicken will be lifted, as current trends indicate that the supply of both food items is now stable.
He said the move is to enable the local market to function freely in ensuring a sufficient supply of chicken and eggs.
Anwar also said that the floating of chicken and egg prices ensures that only eligible citizens, not foreigners or super-rich groups, benefit from the subsidies provided. - Bernama.
