KUALA LUMPUR: The discontinuation of subsidies and price controls on chicken effective November 1 is expected to save RM100 million per month. These savings will be used to enhance various socio-economic and welfare initiatives, including cash assistance, as well as strengthen the poultry industry. The Agriculture and Food Security Ministry stated that the savings will allow for incentives such as revolving fund financing for small and medium-sized breeders and microcredit schemes for community farmers. The funds will also support the transformation from open to closed-house poultry systems.
There are concerns regarding the potential increase in chicken prices after November 1. The Ministry assured that chicken prices at retail outlets in rural areas will remain around RM10.40 per kilogramme (kg), while the price at hypermarkets is not expected to exceed RM9.40 per kg. However, due to cutting charges imposed by retail traders, the purchase price of chicken has risen to RM10.40 per kg.
To assist consumers in rural areas, the government plans to organize Agro Madani and Rahmah Sales events nationwide to ensure competitive prices that do not burden the people. The Ministry, together with the Domestic Trade and Cost of Living Ministry, will monitor chicken prices from farm to retail outlets. In the event of a sudden price hike due to supply shortages, the government is prepared to import chicken from foreign sources to maintain sufficient domestic supply.
If needed, the government can impose price controls, with or without subsidies, to regulate prices. The Ministry also addressed the difference between standard and super chickens, stating that standard chickens are sold with additional parts and are usually RM1 per kg cheaper than super chickens. This price difference is expected to be maintained when the prices are floated.
In Sabah, Sarawak, and Labuan, where base prices are slightly higher due to local factors and costs, adjustments can be expected in producer, wholesale, and retail levels after the price float. Stability in prices is anticipated if there are no disruptions in the production phase and sufficient supply. The government has allocated RM3.8 billion for egg and chicken subsidies since February 2022 and ending bulk subsidies for chicken aims to reduce leakage of subsidies to foreigners and high-income groups.
Meanwhile, the government will continue subsidizing and controlling egg prices to prevent further burden on the people. This policy will be reviewed once egg supplies and production costs stabilize. – Bernama
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