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Egg Subsidy Increased To 10 Sen, Says Annuar Musa

Egg Subsidy Increased To 10 Sen, Says Annuar Musa

It’s hoped that the subsidy hike will encourage egg farmers to increase their supply.

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The subsidy for the chicken eggs has been increased to 10 sen per egg effective immediately, says anti-inflation task force chairman Annuar Musa.

According to Free Malaysia Today, the subsidy increase would involve more than RM20 million in government spending and it’s expected to benefit 338 chicken farms.

Previously, the subsidy for eggs was set at 8 sen per egg. The 2-sen increase applies to all Grade A, B, and C chicken eggs in an effort to retain the retail control price of eggs and manage the egg shortage.

READ MORE: Malaysia Can’t Afford To Import Chicken Eggs, Minister Suggests RM20 Million Monthly Subsidy

The average cost of producing an egg costs 51 sen while the ceiling price was set at 41 sen.

When the subsidy was increased from three sen to eight sen per egg last month, there was still a gap of 2 sen for the producers.

This discouraged producers from producing sufficient Grade A, B, and C eggs with most of them opting to slaughter the chickens that had yet to reach maturity.

Annuar said the chicken slaughter affected the egg supply and resulted in a shortage of about 100,000 eggs a month.

The increase in subsidy hopes to encourage egg farmers to increase their supply.


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