KUALA LUMPUR: The government will no longer provide subsidies to chicken breeders from July 1, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

He said the subsidy 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 kilogramme (kg), 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 demand 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 here today.

However, he said the Minister of Domestic Trade and Consumer Affairs (Datuk Seri Alexander Nanta Linggi) and the Minister of Agriculture and Food Industries (Datuk Seri Dr Ronald Kiandee) would announce the details.


He said the government was also carrying out various actions to ensure sufficient food supply and prices could be stabilised.

One of them is to encourage activities in the agrofood industry, including chicken breeding and planting of corns by setting up an agrofood fund of RM500 million in soft loans to industry players.

"We will also identify farmers' organisations or cooperatives involved in agrofood 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 agrofood industry players," he said.

Ismail Sabri said the government would also stop the export of chickens to help overcome the shortage in the country.


At the media conference later, Ismail Sabri, who was asked to elaborate on the issue of channelling the subsidy for chicken breeders to the people, said this was following a reduced number of claims made by the breeders.

"This is because of the nearly RM700 million subsidy provided for the breeders, not even 10 per cent of the breeders claimed the subsidy thus far. So, we noticed there was a small problem there.

"Many sold at RM8.90 (per kg) but did not get the subsidy. So, this burdened the small breeders and traders. If they (breeders and traders) want to increase the price, they dare not because action will be taken against them by KPDNHEP (Ministry of Domestic Trade and Consumer Affairs). So, for us, the best is to give (the subsidy) directly to the people," he said.

-- BERNAMA