SARAWAK Food Industry, Commodity and Regional Development Minister Stephen Rundi Utom has urged people in the state to avoid panic-buying, following the government’s decision to lift the subsidies for chicken effective on Wednesday.

He said although the announcement might result in higher retail prices, the ministry would continue to monitor the figure to protect consumers.

“The price will increase according to the cost of production as the government no longer gives subsidies to prevent losses to farmers. If the price is too high, we can open importation,” he told Bernama when contacted today.

He said the announcement, however, does not affect the supply in the state as it can still meet consumers’ demand.

Currently, the retail price of chicken in Sarawak varies according to districts, from RM9.80 to RM13.90 per kg.

Meanwhile, traders expressed concern their business would be affected if chicken prices increase following the recent announcement.

Chicken rice seller, Senah Idris, 53, said traders like her may incur losses and not receive the expected returns.

“If the price goes up too high, it will be tough for us. Our capital and profits won’t match and we have to increase the price.

“But if chicken price remains the same or only increases by about RM2, we can still maintain our prices. Whatever it is, we have to wait for the price offered by traders and suppliers,” she said.

Chai Ik Chung, 48, a salesman for a fresh chicken supply company said they had not received any directives regarding market prices.

Earlier today, Agriculture and Food Security Minister Mohamad Sabu announced the move to float the chicken price was done to prevent leakages of subsidies, which are also enjoyed by foreigners and high-income groups.

However, the government agreed to continue subsidies for grade A, B and C eggs.

Meanwhile, Sibu MP Oscar Ling said floating chicken prices was the best option because they can help local farmers balance the increase in global feed prices.

“To prevent losses, they have to reduce production, and this will disrupt the supply of chicken in the local market,” he said when contacted.

Ling also said during his dialogue with the related associations last December, the producers informed him they were willing to compete with the prices of imported chicken and eggs if the government was willing to float the prices. – Bernama, October 30, 2023.