SHAH ALAM - The discontinuation of subsidies and price controls on chicken, which began yesterday shows no significant increase but instead, most places continue to maintain prices at around RM6.49 to RM9.90 per kilogram (kg).
This was based on a survey of prices in the Peninsular states such as Selangor, Negeri Sembilan, Pahang, Melaka, and Kelantan.
Traders stated that one of the reasons they maintained these raw material prices was that the costs from suppliers had not changed.
Some anticipated that chicken prices would decrease based on the current trend among suppliers and then rise again in the coming weeks, but this would not burden consumers.
In Ipoh, Perak, chickens were being sold from the range of RM9.40 to RM10.50 per kg, compared to RM7.90 to RM9 before.
It was also reported that almost all traders stated that they would not impose any chicken-cutting charges, as they consider it a free service to be provided to customers.
Prime Minister Datuk Seri Anwar Ibrahim, during the presentation of the 2024 Budget, announced the temporary release of price controls for eggs and chicken that were previously set, allowing the local market to operate freely to ensure the supply's availability in the market.
He said that since Feb 2022, subsidies for grade A, B, and C eggs and chicken, previously introduced only during festive seasons had continued with government support, amounting to RM3.8 billion.
Last Saturday, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu assured that chicken prices would remain below the price ceiling after subsidies and controls were discontinued.
Mohamad added that subsidies and price controls for grade A, B, and C eggs would also continue using the existing mechanisms.
Unchanged, sold at lower prices
In Kuala Lumpur, chicken prices after the discontinuation of subsidies and price controls saw no sudden price hikes.
Instead, a survey at the Selayang Market and its vicinity found that the raw material was sold at lower prices as low as RM8.40 per kilogram (kg).
Furthermore, several traders kept the same prices as the day before, without charging service fees or cutting costs for consumers.
A trader Bukhari Yaakob, 68, said that chicken was sold at RM8.40 per kg on Wednesday compared to RM8.70 the previous day.
He said that this was lower than the government's previous ceiling price of RM9.40 per kg, as they obtained a lower price from suppliers due to excess stock.
"The supplier set a lower price because there is excess stock. Chickens from this coop need to be sold to avoid excess. Stock is now seen as stable, and the chicken's weight has exceeded 1.8 kg. Some even reach up to 3 kg compared to the past stock issue, where its weight was less than 1 kg," he said.
Bukhari, with 35 years of experience in the chicken business said that there were three price decreases involving the supply in October.
Chicken prices are expected to continue to decrease
In Kuantan, Pahang, traders in the region expect chicken prices to continue to decrease after the government ends subsidies for raw materials on Wednesday.
A survey at the Kuantan Market and the Balok Market found that the sale of raw materials remained cheap, at RM9.20 per kg compared to RM10.40 on Tuesday.
Fresh chicken trader, Ali Akbar Othman, 52, said that the low prices offered by the supplier allowed traders to sell chicken at a lower price.
"If we follow the current supply trend, prices will likely stabilise. This brings relief to traders and consumers. I agree with the government's decision to remove subsidies at this time," he said.
Still affordable - Traders
Meanwhile, in Pasir Puteh, Kelantan, the suspension of chicken prices starting on Wednesday had seen raw materials still being sold at affordable prices, as before.
A survey by Sinar at several chicken sales premises found prices ranging from RM6.49 to RM7.99 per kg, lower than the previous price control of RM9.40.
A chicken store employee, Zainal Udin, 46, said that raw materials were sold for RM6.49 per kg.
"The most expensive I've ever sold was RM8.40, and RM6.49 is the cheapest so far," he said.
He also said that chicken cutting fees would not be charged, even though subsidies have ended.
For traders in Bukit Abal, Khairul Sinwa, 31, said he was prepared for any possibility after hearing about the subsidy discontinuation.
"I expect chicken prices to rise to around RM9 soon. Even if they go up, I won't charge for cutting chicken because it's a free service," he said.