Will govt's decision to deregulate chicken, egg prices be boon or bane to consumers? Only time will tell, experts propose
KUALA LUMPUR, Oct 30 — It will take some time to assess the impact of the government’s decision to deregulate chicken and egg prices which would be finalised today, several experts have reportedly said.
Federation of Livestock Farmers Associations of Malaysia deputy president Lee Yoon Yeau told The Star that any consequences of this decision would become evident only after a certain period has passed.
“This is because the products involve live animals that may be subjected to many issues such as diseases, weather, quality of feed and farm production,” he said as quoted while adding that there had never been a shortage of eggs in Malaysia.
Adding more, he said industry was “damaged” for the past three years over the past three years due to the repercussions of the Covid-19 pandemic.
“With the longest price control period in the history of Malaysia (more than 18 months), many farmers have to cut production due to cash flow issues.
“The egg industry needs a longer recovery period compared to chicken,” he reportedly said.
He was commenting on Agriculture and Food Security Minister Datuk Seri Mohamad Sabu’s expected announcement today regarding the specifics of floating prices for chicken and eggs in the market, along with the elimination of subsidies.
On the other hand, Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry resident Nivas Ragavan expressed concerns that unscrupulous middlemen and distributors might take advantage of the situation and raise prices, particularly with Deepavali approaching.
He emphasised the need for Malaysia to increase domestic production to address the country’s heavy reliance on food and agricultural product imports, which amounted to approximately RM60 billion in 2021 and RM70 billion in 2022.
“We are importing 65 per cent of our food and agricultural products. In 2021, this amounted to some RM60 billion and in 2022, it was RM70 billion. We should try to produce more domestic products to cater to the people and contain the pricing.
“The ringgit has depreciated badly and, as such, imported inflation will drive the food and agricultural costs higher. Ideally, we should have prepared the rakyat to face the situation six months ago than be in a denial mode,” he told the news portal.
Nivas said the impact of allowing chicken and egg prices to fluctuate would directly impact the majority of households and diminish the purchasing power of the people.
“What happened to the targeted subsidy approach initiative to safeguard and protect the welfare and livelihood of the people?” he asked.
Also weighing on the same matter, Consumers Association of Penang education officer NV Subbarow said the government should maintain its price controls on chicken and eggs, just as it does for other goods.
Adding more, he said it is essential for the government to actively oversee and take measures regarding pricing, especially if it detects any instances of profiteering by traders.
“Consumers are not happy to allow the prices to float as they fear some traders would take this opportunity to increase prices by saying chicken feed prices have gone up.
“I mean who will be monitoring them and taking action when traders are saying transport charges have gone up or workers are demanding more salary?” he was quoted as saying.
During the presentation of Budget 2024 on October 13, Prime Minister Datuk Seri Anwar Ibrahim mentioned that the government was contemplating allowing the prices of chicken and eggs to fluctuate, given the current stability in their supply.
As it stands, the maximum retail price for standard chicken is set at RM9.40 per kilogram, and for Grade A eggs, it’s 45 sen per egg, while Grade B eggs are priced at 43 sen, and Grade C eggs are at 41 sen in peninsular Malaysia.
