The Agriculture and Food Security Ministry is considering implementing a targeted subsidy system if the price of chicken experiences a significant increase after the removal of subsidies and price controls on November 1. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu believes that targeted subsidies will ensure that only those in need will benefit from the subsidy.
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“If the increase (in chicken prices) is extreme, we intend to give targeted subsidies to the affected B40 group because if we give blanket subsidies, it will only benefit the towkay (boss) and large manufacturers,” Mohamad said during the Supply Bill 2024 debate in the Dewan Rakyat on October 30.
He also mentioned that the price of chicken has decreased due to a drop in the prices of chicken feed ingredients such as grain corn and soya bean. Some places even sell chicken for less than RM7 (per kg).
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Mohamad stated that the government’s decision to terminate the chicken subsidy was the right one, and suppliers have assured that the chicken supply is sufficient and will continue to increase in the future.
Addressing the rice monopoly issue by Padiberas Nasional Bhd (Bernas), Mohamad explained that Bernas’ privatisation model is cross-subsidy, which means that import profits will be used to fulfill the government’s duties and responsibilities.
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He further mentioned that improvements have been made to the agreement between the government and Bernas, with Bernas now obligated to carry out 10 social obligations worth RM3.2 billion on behalf of the government. These obligations cover various programs and incentives throughout the value chain until 2031.
Overall, the current policy is deemed relevant in addressing the current situation, with the government closely monitoring Bernas’ performance as the main importer of national rice.
– Bernama
