Scrapping chicken subsidies proof of policy failure, say MPs

Two MPs have accused Putrajaya of policy failures following a decision to withdraw subsidies for poultry breeders from July 1 onwards.

In a statement, Bayan Baru MP Sim Tze Tzin said he had received feedback from industry players that the subsidy scheme was too complicated and many breeders have yet to be compensated.

"The mechanism is very complex, and every state has different rules. The application process is opaque. Many documents are required.

"Breeders have to go through many challenges before finally having their application rejected," said Sim, PKR's spokesperson on agricultural matters.

According to Sim, the majority of breeders have yet to receive the subsidy, which kicked off in February.

Bayan Baru MP Sim Tze Tzin

In February, Putrajaya agreed on a RM0.60 subsidy for every kilogramme of chicken produced and RM0.05 subsidy for every egg.

This was to help chicken breeders struggling with the soaring price of chicken feed and a RM8.9 per kilogramme price ceiling for whole dressed chicken.

Yesterday, the cabinet decided that the subsidy was to be removed.

Meanwhile, Bukit Bendera MP Wong Hon Wai urged Putrajaya to channel the subsidies once intended for chicken breeders to B40 and M40 households.

Bukit Bendera MP Wong Hon Wai

Wong said there are 2.78 million B40 families and 2.78 M40 families hit hard by the rising cost of living.

"(Putrajaya's) latest announcement is an admission that the government has failed to regulate the prices of chicken, and this is clear evidence of a failure of public policy.

"The government has earlier announced a subsidy of RM729 million to chicken breeders through the maximum price control scheme implemented on Feb 5, 2022, to June 5, 2022, for 121 days.

"The government should channel the RM729 million originally allocated to chicken farmers to help 5.56 million B40 and M40 families. Each family will receive roughly RM130," said Wong in a statement.

Chicken prices have risen in recent months as breeders cut supply due to pricey feed, a government-mandated price ceiling and disease. - Mkini