Agriculture Ministry: Govt spends RM550mil a month in subsidies to stabilise chicken, egg prices


PETALING JAYA: The government is spending RM550mil a month to subsidise the cost of chicken and eggs for the rakyat, says Deputy Agriculture and Food Industries Minister II Datuk Dr Nik Muhammad Zawawi Salleh.

He said the government has taken a drastic approach for chicken and eggs due to the price increase of these goods, adding that the government subsidies are RM0.60 per kg for chicken and RM0.05 for an egg.

“This amount looks little but it has reached RM550mil a month,” he said when replying to a question raised by Wong Hon Wai (PH – Bukit Bendera) in Dewan Rakyat on Thursday (March 3).

Wong had asked what the government's efforts are to ensure that the price of goods such as chicken are stabilised in light of the increase of Brent crude oil prices and the disruption of global supply chains due to the Russia-Ukraine war.

Datuk Seri Salim Sharif (BN-Jempol) had also suggested that the ministry consider setting up a centralised poultry supply system.

Salim said this would help keep the cost low for such items meant for the rakyat such as what is done for fresh produce sold by farmers through the Federal Agricultural Marketing Authority (Fama).

Nik Muhammad said that they have plans to manage poultry farming in the country, although this would not guarantee that chicken and eggs prices would not increase in price as it also depends on other necessities that are imported from overseas.

On the issue of food security that was raised by Datuk Zakaria Mohd Edris (Bersatu - Libaran), Nik Muhammad said that the Ministry has taken several measures to guarantee the availability of food domestically.

Among others, he said, these were to improve supply chain efficiency through the construction and upgrading of collection, storage, processing, distribution and marketing centres as well as logistics and transportation facilities.

He said other improvements included infrastructure and facilities such as roads and farm facilities and expansion of farmers' market access through marketing outlets as well as encouraging entrepreneurial participation in eCommerce platforms and strategic collaboration platforms with the private sector.

Nik Muhammad added that the Ministry also boosted food production activities by providing subsidies and incentives for crop inputs.

He added that the Ministry has also formulated several strategies to raise domestic food production under the Pelan Tindakan Dasar Sekuriti Makanan Negara (Pelan Tindakan DSMN) 2021-2025 which would help to reduce the country's reliance on imports.

Among them, he said, is to encourage the cooperation with the private sector through Smart Sawah Berskala Besar (Smart SBB) to increase the productivity of the padi industry and country's rice, to establish the Lembaga Ruminan Negara, to expand urban agricultural activities and community farms, and to strengthen research and development to produce quality breeds and seeds to increase productivity.

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