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PUTRAJAYA – The Task Force on Jihad Against Inflation has rejected recommendations to float the prices of eggs or to import eggs despite the domestic shortage of supply, said its chairman Tan Sri Annuar Musa.
Annuar confirmed that there was a shortfall of more than 96 million eggs a month, as higher production costs had caused monthly output to drop to only 871.9 million eggs compared with demands totalling 968.8 million eggs.
“We do not view the import option as a solution. First, it is because the prices of eggs are far higher outside, so it is not possible to import more expensive eggs to be sold cheaply in the country. Furthermore, we want to protect the local production industry.
“And if egg prices are floated, they will surge by at least 12 sen. The task force is not agreeable to this suggestion, although floating is seen as a more sustainable way out, especially in the opinion of producers at the farm,” he told a news conference after chairing a meeting of the task force here today.
To address this issue, the task force recommended that the subsidy of eight sen per egg be increased by two sen, involving a financial implication of RM20 million a month, or that the existing controlled price be raised by two sen per egg.
Annuar said the current prices of eggs at the farm level are 41 each for grade A, 39 sen for grade B, and 37 sen for grade C.
However, the production cost at the farm level for grade A eggs is 51 sen each.
“Adding the 41 sen cost for grade A with the eight sen (subsidy) makes 49 sen, so the income of producers is two sen short of the production cost. This caused some breeders to resort to actions like killing chickens that have reached a certain age earlier. Normally chickens that are 80 to 85 days old can still lay eggs, but they had to be killed to cut costs.
“Substitute chickens for those slaughtered are slow in production, causing overall output to continue dropping and affecting egg supply in the country,” he added.
As one of the options proposed involves financial implications at a time when Parliament had been dissolved, the matter was immediately referred to the caretaker prime minister and finance minister because a quick decision was needed, he said.
He said the task force asked for the cooperation of egg producers to not destroy hens at a younger age and for industry players to come up with other suggestions to overcome the short supply of eggs.
On enforcement regarding the prices of chickens and eggs, he said that since February 5 this year, 151 cases under offences of selling above the maximum price had been identified.
On cooking oil offences, 177 cases have been identified, with seizures worth RM3.3 million. – Bernama, October 25, 2022