The price of chicken can be much lower than the previously set controlled price of RM9.40 per kg, even after subsidies and price controls are discontinued from Nov 1.
Acting Domestic Trade and Cost of Living (KPDN) Minister Armizan Mohd Ali said industry players have assured the government there would not be a surge in prices of chicken from Nov 1 following the termination of subsidies and price controls, and that supply of chicken would be adequate.
"After implementing (subsidies and price controls on chicken) for 20 months, we see that with the industry’s assurance, we can float the price of chicken.
“The industry has also guaranteed that the supply will be sufficient, and they are able to sell it at a lower rate than the (previous) controlled prices," he told reporters after officiating at the Malaysia Competition Commission (MyCC) Open Day today.
Earlier, the government set the ceiling price for chicken at RM9.40 per kg.
Minister of Agriculture and Food Security (MAFS) Mohamad Sabu yesterday announced that the government has agreed that subsidies and price controls for chicken will be fully terminated starting Nov 1, while subsidies and price controls for grade A, B and C eggs will remain according to the existing mechanism.
Mohamad said the rationale for ending subsidies in bulk for chicken is to reduce subsidy leakage, which has also been enjoyed by foreigners and high-income groups.
He also called on consumers not to resort to panic buying during the coming days as the supply of chicken is guaranteed to be sufficient.
Price monitoring
The media has reported concerns among the public regarding the implementation of the floating price system for chicken as many were afraid that the prices would soar, making it difficult for lower-income groups to purchase this raw material.
Armizan said that the industry players' commitment was translated through studies and engagement sessions held previously in collaboration with MAFS.
Despite the assurances from the industry, Armizan said KPDN will still mobilise 900 officers to all areas tomorrow to monitor chicken prices and take legal action if necessary.
In another development, Armizan said KPDN is in the final stages of amending the Competition Act 2010 (Act 712) and the Competition Commission Act 2010 (Act 713), which would likely be tabled in the first session of the Dewan Rakyat next year.
On amendments to Act 712, he said it would include introducing a new component known as the merger and acquisition control regime to regulate, should there be a tendency for companies to merge and collude to limit prices and production.
Since 2012 until October 2023, MyCC has taken action against 247 companies with financial penalties amounting to RM175 million for offences under Act 712, while 430 cases are still under investigation, he added.
- Bernama
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