THE government will no longer provide subsidies to chicken breeders from July 1, said Prime Minister Ismail Sabri Yaakob.

He said the subsidies will, instead, be channelled directly to the people who are in need of assistance, adding that this was aimed at ensuring the people are not burdened by the hike in chicken prices.

Ismail Sabri said that previously, to ensure chicken prices were not increased, the government had provided subsidies to breeders so that the price of chickens would remain stable at RM8.90 per kilogram, as they could reach RM12 per kg if the price was floated.

“The government spends RM720 million to ensure the price of chicken is not increased. However, many of the breeders do not claim the subsidy payments and various issues are raised,” he said in his speech at the BN Convention held in conjunction with BN’s 48th anniversary celebration in Kuala Lumpur today.

He said the Minister of Domestic Trade and Consumer Affairs Alexander Nanta Linggi and the Minister of Agriculture and Food Industries Dr Ronald Kiandee would announce the details.

Ismail Sabri said the government was also undertaking various solutions to ensure sufficient food supply and so that prices could be stabilised.

One way is to encourage activities in the agro-food industry, including chicken breeding and planting of corn by setting up an agro-food fund of RM500 million in soft loans to industry players. 

“We will identify farmers’ organisations or cooperatives involved in agro-food projects to be given financial aid.

“The government will also create a buffer stock for chicken, fish and meat. The government is studying the tax incentives to be given to agro-food industry players,” he said.

Ismail Sabri said the government would stop the export of chickens to help overcome the shortage in the country. – Bernama, June 1, 2022.