PUTRAJAYA: The government is mulling removing subsidies for chicken egg producers.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the savings from these subsidy cuts could be redirected to develop other critical areas in the agro-food sector.
"It's time for the ministry to re-evaluate the subsidy given for chicken eggs grades A, B, and C," he said in his speech at the ministry's monthly assembly today.
Also in attendance were his deputy, Datuk Arthur Joseph Kurup, and ministry secretary-general Datuk Seri Isham Ishak.
Mohamad later told reporters that removing subsidies for eggs may result in savings of up to RM100 million for the country.
He said a proposal to remove the egg subsidy had been submitted to the Finance Ministry and the Domestic Trade and Cost of Living Ministry.
"If approved, we could end the subsidies," he said.
Chicken egg subsidies cost the government over RM900 million last year.
He cited a similar move with the removal of the chicken subsidy on Nov 1 last year, which had been widely regarded as an unpopular decision.
"When we made that decision to end the chicken subsidy, many criticised it, claiming chicken prices would skyrocket.
"Alhamdulillah, after the subsidy was removed, chicken prices did not soar. More importantly, the country saved RM100 million a month."
He noted that the government's decision to end the chicken subsidy last year had proven to be successful, with chicken prices and supply in the market stabilising.
"When I first took office, the country was facing a shortage of chickens and eggs. Now, chicken farmers are complaining to me that prices are too low.
"Alhamdulillah, thanks to the hard work of everyone here, we no longer hear complaints from the public about the lack of chicken and eggs in the market."