PRODUCERS and sellers must not take advantage when the government lifts the ceiling on prices of chicken and eggs next month, Mydin hypermarket managing director Ameer Ali Mydin said. 

He hopes the industry, especially chicken suppliers, will manage the pricing correctly and not engage in unscrupulous profiteering.

“Next month the government will lift the RM9.40 ceiling price of chicken. 

“We must remember that just because the government floats the price, it doesn’t mean the price of chicken should go up (unfairly),” he told The Malaysian Insight. 

The temporary controls for eggs and chicken had been put in place to ensure prices of these items and their supply remained stable.

Prime Minister Anwar Ibrahim announced in his Budget 2024 speech on October 13 that the temporary ceiling price imposed on chickens and eggs will be waived to allow room for the market to freely manoeuvre in ensuring uninterrupted supply.

Following this, Agriculture and Food Security Minister Mohamad Sabu said the date for chicken and egg prices to be floated would be announced during a press conference on October 30. 

He said discussions were being held with all quarters to ensure prices remained reasonable after the announcement. 

Ameer also said another challenge was going to be the availability of eggs, which will not go up so quickly even after prices are floated.

“It’s a cycle. It won’t stabilise immediately although it might be faster for eggs.

“At the moment we have no shortage of chicken. All the hypermarkets have also been selling chickens below the control price of RM9.40.

“But, I’m unhappy with the suppliers because as the industry got wind that the government was intending to float prices, they had resorted to hiking prices by 60 sen per kg just this week.

“We have been selling at RM8.29 per kg now but our cost has gone up by 60 sen, so we are forced to sell at RM8.89.”

Ameer said the Domestic Trade and Cost of Living Ministry must take action against such profiteering. 

“The ministry must go after industry players because why should they increase prices?

“Theoretically, they shouldn’t be increasing the prices immediately. A review of the pricing may be needed a month later, if their cost structure is higher.

“The ministry must check on the prices, and the sellers must justify the increase.”

Similarly, he said for eggs the control price for grade A is 45 sen, B (43 sen), and C (41 sen).

“The market talk is that the price of eggs might go up by 10 sen. If the price rises from 45 sen to 55 sen, I doubt the prices can go higher than that because Omega eggs cost 60 sen. 

“So, how can grade A eggs be more costly than Omega eggs?

“The industry better take heed, because the prime minister is adamant that the people benefit from this (floating of prices) and not be taken advantage of.”

He added that the authorities must act firmly if industry players take advantage because the whole idea is to allow market forces to regulate prices and ensure availability. – October 22, 2023.