The government will stop providing subsidies to chicken farmers and will provide direct cash subsidies to the nation from July!
Prime Minister Datuk Seri Ishmael Sabri announced that the government will change the mechanism of broiler subsidy from July 1, the government will no longer provide subsidies for chicken farmers, but will directly provide cash subsidies for the people of the country.
At present, in order to curb the price increase of broiler chickens, the government provides subsidies to chicken farmers to maintain the price of RM8.90 per kilogram of broiler chickens. If there is no subsidy from the government, the price of broiler will exceed RM12 per kilo.
However, the current subsidy mechanism adopted by the government has caused a lot of dissatisfaction among chicken farmers, who demanded the government to allow the price of broilers to fluctuate automatically. Some farmers have even deliberately caused a shortage of broilers in the country to force the government to raise the price of broilers.
To cope with this dispute, the Prime Minister announced that he would stop providing subsidies to chicken farmers and allow the price of broilers to float automatically. The government will shift the subsidies for chicken farmers to subsidize consumers, who will receive cash subsidies.
The government has not yet announced how it will provide cash subsidies to consumers, but it is very likely that it will be in the form of direct payments to people. If the government is to hand out aid, this will also give rise to another problem, that is, the uneven distribution of aid.
