KUALA LUMPUR – The government has given an assurance that there will not be a sudden increase in the price of chicken following the end of subsidies and chicken price controls effective November 1.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said that at the moment, the average trader sells chicken far lower than the ceiling price set since February 2022, which is RM9.40 per kg. Suppliers have also assured that the supply of the item is sufficient for now and in the future.
“Therefore, if there is a flotation (of price), we are confident that the price will not rise suddenly. It will be stable. If it rises suddenly, we will ask for the reason because there is enough supply.
“While prices always rise sharply when the supply is not enough, the suppliers (of chicken) have guaranteed that the supply is enough and if it is not enough, we are ready to bring it from outside immediately,” he said in a press conference on the end of price controls and chicken subsidies here today.
Mohamad said this when announcing the government’s decision to terminate subsidies and chicken price controls starting November 1.
However, the subsidies and price controls for grade A, B and C chicken eggs will continue, using the existing mechanism. Since February 2023, the government has borne RM3.8 billion for chicken and chicken egg subsidies.
The termination of bulk subsidies for chicken is a step to reduce the leakage of subsidies such as when these subsidies are enjoyed by foreigners and high-income groups as well.
Mohamad said that the move has been taken after due consideration. The government will continue to ensure that the selling price of chicken in the market is reasonable and does not burden the people, he said.
He also called on consumers not to resort to panic buying during the coming days as the supply of chicken is guaranteed to be sufficient.
On the rationale for continuing the subsidy and control of egg prices, he said that if these are terminated the prices of eggs are expected to rise by approximately 10 sen per egg.
"But the breeders are guaranteeing they will provide enough eggs in the future. The government will make announcements on this matter from time to time," he said.
Meanwhile, Datuk Mohd Sayuthi Bakar, the secretary-general of the Domestic Trade and Cost of Living Ministry, told the press conference that the government can implement intervention measures under the Price Control and Anti-Profiteering Act 2011 to ensure that chicken is sold at prices that do not burden the people.
He said that his ministry will enforce the relevent provisions of this act, assuring that action will be taken if there is any violation under the law.
However, if the price gets out of control and becomes too burdensome for the public, the government can implement price controls again, either through subsidies or other means.
"That may be the last step. We will monitor first from November 1, but we are confident that there will not be a sudden increase in the price of chicken.
"There may even be certain places, especially in supermarkets, where consumers can get prices that may be lower than the previous control price," he said.
As an intervention measure, he said the ministry is also planning to hold more than 3,600 Rahmah sales events across the country in November and December where basic items and necessities will be sold at lower rates by 10 to 30 percent of market prices, he added.
During the tabling of Budget 2024 on October 13, Prime Minister Datuk Seri Anwar Ibrahim had announced that the temporary price controls for eggs and chicken would 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. – The Vibes, October 30, 2023
.jpg)
