KUALA KANGSAR - Agriculture and Food Industry Minister Datuk Seri Dr Ronald Kiandee said the government has paid out RM200 million in subsidies to poultry farmers nationwide as of Thursday.
He said there was surplus to the subsidy rate of about RM529 million after the payment was made, out of the total of RM729.43 million allowed under the Malaysian Family Maximum Price Control Scheme (SHMKM)
The excess allocation would not be used for the same subsidy payment after June 30, but will instead be used in other forms of contribution.
"After the last payment on June 30, we will not provide subsidy again.
"So, the value of the surplus will be diverted in other forms (of contribution) as announced by the Prime Minister specifically for the B40 group which will be determined by the Finance Ministry," he said.
Ronald said this in a press conference in conjunction with a working visit to the Kuala Kangsar agrofood marketing development project here on Saturday.
Perak Menteri Besar Datuk Seri Saarani Mohamad was also present.
Commenting further, Ronald said the cessation of the subsidy will cause an increase in the price of chicken in the market between RM11 to RM12 per kilogramme compared to the ceiling price of RM8.90 set by the government.
He said the subsidy given previously saw the government having to cover up to RM1.40 per kilogramme and if the price remained floating after the end of the maximum retail price scheme on June 30, there will definitely be a price increase.
"The government is accommodating because they are aware of the increase in the cost of agricultural inputs, labour and the death of livestock due to diseases that have to be borne by farmers.
"If the price of chicken is floated, of course the price will exceed the current RM8.90 per kilogramme ceiling price that has been set," he said.
On June 1, Prime Minister Datuk Seri Ismail Sabri Yaakob said the government will no longer channel subsidies for farmers starting July 1, as many of them did not claim the subsidy.
Instead, the government would introduce direct financial contributions to citizens, particularly the B40 group, to ensure that consumers are not overburdened by price increases.
In another development, Ronald said the ministry will submit several long-term plans to overcome the padi fields irrigation problem in Kerian following the drought which occurs every season.
He said discussions on the matter were still ongoing at the ministry level with the state government so that the best approach could be achieved to avoid a lasting impact on the scheduling of padi crops in the area.
"Every time the dry season arrives, there will be problems with water reservoirs in catchment ponds that affect the irrigation.
"For padi cultivation areas, irrigation is the most important issue and of course, we need long-term measures to address it.
"However, this subject is still being discussed by the government so that the same situation does not reappear," he said