THE government has saved RM135mil over the past three months following the gradual reduction of chicken egg subsidies, with no major disruptions to supply or price hikes ahead of the full removal of subsidies on Aug 1.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu gave an assurance that the move to end subsidies had not negatively impacted the market, noting that egg production remains robust at around 1.75 billion eggs per month.
This is well above the domestic demand of 1.06 billion eggs. The surplus of 690 million eggs is expected to partly support exports.
“Egg supply is stable and prices are reasonable. The removal of subsidies will not affect stability because the industry has responded well. We’re also seeing a drop in chicken feed costs, which helps,” he told Datuk Seri Sh Mohmed Puzi Sh Ali (BN-Pekan), who had voiced concerns about the impact of subsidy removal on B40 households.
Mohamad also noted that lower-grade eggs remain affordable despite the subsidy changes.
“Grade C and D eggs are widely available. In some areas, a tray of 30 can be bought for less than RM10. This ensures that B40 families are not burdened by rising prices.
“There are even areas where sellers have had to offer eggs at lower prices due to abundant supply, especially for grades C and D,” he said.
“Grades A and B are slightly more expensive, but C and D are in the market, and that’s what many consumers are opting for,” he added.
Based on the government’s previous announcement, the subsidy was reduced from 10sen to 5sen per chicken egg from May 1. It will be removed entirely on Aug 1.
To prevent profiteering and ensure continued affordability, both the Agriculture Ministry and the Domestic Trade and Cost of Living Ministry are monitoring prices and supply nationwide.
“We’re working with all parties – breeders, wholesalers and others. So far, the situation is stable and well-managed,” said Mohamad.
