Task Force on Inflation is against to fluctuating egg prices and imports of eggs.
The Task Force on Jihad Against Inflation has rejected requests to float egg prices or import eggs despite a supply constraint in the domestic market, according to its head Tan Sri Annuar Musa.
The Minister of Communications and Multimedia stated that there was a monthly shortfall of more than 96 million eggs because increasing production expenses had reduced monthly output to approximately 871.9 million eggs compared to demands of 968.8 million eggs.
They do not consider the import option to be a viable answer. First, because egg prices are much higher outside the country, it is not conceivable to import more costly eggs and sell them cheaply in the country. Furthermore, they wish to safeguard the local manufacturing industry.
If egg prices are allowed to float, they will rise by at least 12 sen. As a result, the task group is opposed to this notion, even though floating is considered as a more sustainable solution, particularly among farm producers.
To solve this issue, the task group proposed either increasing the subsidy of eight sen per egg by two sen, which would cost RM20 million per month, or increasing the present controlled price by two sen per egg.
The farm price of eggs is currently 41 sen for grade A, 39 sen for grade B, and 37 sen for grade C. However, the farm level manufacturing cost for grade A eggs is 51 sen per egg.Adding the 41 sen cost of grade A to the eight sen subsidy yields 49 sen, leaving the producers’ income two sen short of the production cost. As a result, some breeders have resorted to tactics such as destroying hens that have reached a specific age sooner. Chickens that are 80 to 85 days old can still lay eggs but have to be slaughtered to save money. Substitute chickens for those slaughtered are being produced slowly, leading overall output to continue falling and harming the country’s egg supply.
The task committee requested egg producers’ help in not slaughtering hens at a younger age, and industry actors to come up with other solutions to the egg shortage.
Since February 5 of this year, 151 occurrences of selling above the maximum price of hens and eggs have been identified as violations.
There have been 177 incidents of cooking oil offences recorded, with seizures totaling RM3.3 million.
