Are cartels colluding to fix higher prices for eggs, asks Saifuddin

PUTRAJAYA: The Domestic Trade and Consumer Affairs Ministry is investigating the recent rise in egg prices, including whether cartels are colluding to fix these prices.

Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail said action can be taken if there was price fixing for "unreasonable profits" and added that egg exports can also be limited to ensure an improved local supply.

Saifuddin said there has been a trend of rising prices for chicken eggs from mid November until early December.

He said ministry enforcement operations had begun on Dec 7 to find out the causes of price increases at farms, distributors and wholesalers.

Saifuddin added that the ministry has issued notices under Section 21 of the Price Control and Anti- Profiteering Act 2011 to the businesses.

"If the traders are found to increase the prices to get unreasonable profits, we will not hesitate to take action," he told reporters after the Ministry's monthly assembly on Monday (Dec 10).

He said the Ministry wanted to investigate if the higher prices were caused by cartels colluding to fix the prices of eggs.

He said they would also work with The Malaysia Competition Commission (MyCC) and the Veterinary Services department to ensure effective measures are taken to prevent price increases, including to look after factors such as hot weather and diseases.

"Eggs are a cheap source of protein. If it is expensive, there are bound to be many complaints," he said.

He also said they would study the possibility of limiting the exports of eggs overseas.

He noted that Malaysia exported eggs to Singapore, Mauritius and Hong Kong.