Chicken price to be floated from Nov 1

KUALA LUMPUR: Subsidies and price controls on chicken will be discontinued from Nov 1, says Datuk Seri Mohamad Sabu.

The Agriculture and Food Security Minister said the decision to lift the subsidy for chicken has taken into account the current trend of supply and prices which have started to stabilise.

“In line with the approach of retargeting subsidies in phases, the government has agreed that subsidies and price controls for chicken only will be fully terminated starting Nov 1.

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“The rationale for ending subsidies in bulk for chicken is to reduce the leakage of subsidies which at this point are also enjoyed by foreigners and high-income groups,” he said in a press conference at Lembaga Pertubuhan Peladang on Monday (Oct 30).

Mohamad assured the ministry would monitor the prices of chicken to be sold at a reasonable rate with the cooperation of the Domestic Trade and Cost of Living Ministry.

He said there were intervention measures in place by the ministry if there was a surge of prices for the chicken once the ceiling prices were lifted.

"As such, the ministry is expanding the Jualan Rahmah and Madani Agro Sales across the country to supply chicken at an affordable rate.

"We have met with industry players through an engagement session on Oct 22, and they provided their commitment that the prices of chicken will not increase significantly,” he added.

Mohamad also advised the public not to panic buy once the subsidy for chicken is lifted on Wednesday (Nov 1), where an increase in demand could contribute to an increase in prices.

“We will be on standby if it is necessary, to import chicken immediately,” he said.

Mohamad also announced the subsidies and price control for grade A, B and C eggs would remain according to the existing mechanism.

He said if the subsidies were lifted, the price of an egg would increase by around 10 sen.

“Consumers will often purchase a tray of eggs (usually containing 30 eggs) and it will mean an increase of RM3 at this time.

“We will monitor the situation and make the announcement from time to time,” he said.

The government had borne the cost of RM3.8bil for egg and chicken subsidies since February 2022.

On Oct 13, Prime Minister Datuk Seri Anwar Ibrahim announced plans to lift the subsidies for eggs and chicken as supply has stabilised and retail prices showing below ceiling price.