Ending chicken subsidy and control is not license to raise prices - Traders

KUALA LUMPUR - From Wednesday, chicken prices will be determined by market forces after the government announced terminating chicken price control and subsidies today as a measure to reduce leakages enjoyed by foreigners and high-income earners.

The termination of the chicken price control supports the sustainability of the local chicken production industry and allows the government to increase various socio-economic initiatives and people's welfare including cash assistance.

Although the announcement was a relief to the traders, some of them who were met insisted that it was not a license for them to raise prices arbitrarily and did not want to burden consumers who were also affected by the cost of living.

Two chicken traders in Perlis, Mohammad Hafiz Zamri, 21, and Mardiana Mohd, 37, agreed that the Ministry of Domestic Trade and Cost of Living (KPDN) needs to continue monitoring to ensure that no traders take advantage of excessive prices.

"I understand and agree with the government's move to avoid subsidy leakage but at the same time KPDN needs to step up monitoring after this to ensure that prices do not burden consumers," said Mohammad Hafiz.

A chicken trader at Pasar Seksyen 16, Shah Alam, Selangor, Sazali Ramli, 44, said stopping chicken subsidies and price controls is not expected to give consumers a significant price increase as currently traders are selling chicken below the control price of RM9. 40 per kilogramme (kg).

"Currently sellers or traders are more comfortable to sell below the control price because the price of chicken is stable and there is a huge supply of chicken. The effect of ceasing the subsidy will not be felt in the near term but if there is a price increase, it may not reach more than RM10 for one kg," he said.

Based on past experience, chicken wholesaler Mohammad Shafiq Fikri Rosli, 30, of Sapik Poultry Trading Company in Kuala Terengganu, Terengganu said that the price of chicken is not expected to increase significantly with expectations of around RM0.20 to RM0.30 per kg.

"The government can still control the floating price to prevent it from rising very high," he said.

Chicken trader Nik Azwar Nik Dea, 35, from Kuantan, Pahang, said he has no problem maintaining the price of RM9.40 if the wholesaler does not increase the price too drastically which will eventually cause his business costs to go up as well.

" If the wholesaler raises price, we have to increase the price a little to cover the cost of rental because I don't charge for slaughtering. If the price is maintained, I have no problem selling at the same price," he said.

Fresh chicken supplier P. Vikram, 33, from Perak who shares the same view as Nik Azwar, described the government's announcement as a relief for traders.

In Negeri Sembilan, a chicken farmer in Kota, Rembau, Saiful Azman Mohd Zin, 47, who welcomed the government's move, also suggested that the price of corn feed for poultry could be lowered to ensure that the price of chicken would remain low, thus not burdening consumers.

In Kelantan, Pasar Siti Khadijah Petty Bumiputera Traders Association chairman, Ahmad Nazri Che Omar, 54, hopes the relevant ministries will continue enforcement to ensure consumers are not burdened by the move to stop chicken price controls and subsidies.

Sharing the same view, food trader, Samiha Abdul Hadi, 35, also hopes that chicken traders will not raise the price of chicken arbitrarily.

In Kedah, jala roti and yellow glutinous rice hawker, Nurzaila Abd Nasir, 40, and satay seller, NurHazwani Ahmad, 28, who need large quantities of chicken for their business, hope that the Rahmah Sale will be increased to allow traders and the people to continue enjoying the affordable chicken price.

A chicken trader in Penang, Mohd Shafri Mazlan, 42, said the floating of chicken prices is not a ticket for traders to raise prices at will, rather the move is seen to help traders cover the various costs of selling chicken they are currently facing.

Agriculture and Food Security Minister Datuk Seri Mohamad Sabu today said the government agreed to end chicken subsidies and price controls with effect from Wednesday but will continue subsidising grade A, B, C eggs according to the existing mechanism - BERNAMA