Readjust chicken, eggs ceiling prices - Johari
SHAH ALAM - The government can adopt the method of readjusting the retail ceiling price of chicken and eggs according to the rise and fall in world commodity market prices to overcome the supply problem in this country.
Titiwangsa Member of Parliament Datuk Seri Johari Abdul Ghani said that the move needed to be made because the supply problem persisted even though the government spent RM3.8 billion in subsidies to farmers, just for chicken and egg subsidies.
He pointed out that chicken production was very stable at over 100 per cent and eggs reached 110 percent, so the Malaysian chicken and egg industry successfully exported to overseas markets at one point in the past.
"In the past, the government never spent any subsidies on this industry because Malaysia can achieve a self-sufficiency rate for chicken and eggs, and the industry has never had any problems.
"The cause of the problem of egg and chicken supply in our country recently is due to the increase in world commodity prices, where the source of chicken feed, which is imported corn and soybean commodities, has increased several times.
"As a long-term solution, I suggest that when the world commodity prices for chicken feed increase again, the government can adopt a method by readjusting the retail ceiling prices of chicken and eggs according to the rise and fall of world commodity market prices," he said during a debate session in the Dewan Rakyat on Wednesday.
However, Johari said that when adjusting the increase in retail ceiling prices of chicken and eggs according to market prices, the government needed to take care of the B40 and middle class, namely M40, who were affected by this adjustment.
He said the help that needed to be done was to provide cash subsidies for chicken and eggs through 'cash transfer' directly to them.
"Of course, the amount of subsidy given also needs to follow the decrease and increase in line with the retail ceiling price set by the government.
"The impact of the retail ceiling price adjustment method by following the rise and fall of the free market of world commodities as well as the support of providing direct subsidies to the target group can have an impact on the stability of the industry as a whole.
"While the company can operate well and not be closed, the government can get tax from the company's profits due to the healthy development of the industry," he said.
Johari added that the country could also regain a 100 percent 'self-sufficient' rate and did not need to depend on the imported supply of chicken and eggs.
Another impact, he said, was that Malaysia could develop and strengthen its food security position for the chicken and egg industry.
"Indirectly, we are able to export to overseas markets and convince importing countries to buy supplies from Malaysia," he explained.
