Consumer Group Supports Raising Ceiling Price For Chicken


 
The Malaysia Consumers Movement has welcomed a proposal to raise the price of standard chicken to RM9.90 per kg from RM8.90 because of the shortage.PETALING JAYA: A consumer group has thrown its weight behind a hypermarket boss’s proposal to increase the ceiling price of standard chicken.
Commenting on Mydin managing director Ameer Ali Mydin’s proposal to raise the price to RM9.90 per kg from RM8.90 because of the current shortage, Malaysia Consumers Movement president Darshan Singh said this would motivate chicken farmers to maintain their production.
“A harmonious ecosystem between consumers and traders must be maintained, or else all parties will lose in the end,” he said.
“Worse still, if chicken farmers stop producing to avoid losses, there will not be any chicken in the market.”

Darshan said all stakeholders must be engaged to identify cost components and measures to help overcome the rising costs.
Malaysia is facing a shortage of the popular protein source due to the increased cost of chicken feed and a labour shortage.
Chicken traders are reportedly selling chicken above the ceiling price, which will be in effect until June 5, with many saying they have no choice as suppliers are charging them RM8.70 per kg.
Center for Market Education CEO Carmelo Ferlito also supported Ameer’s proposal, saying the retailer was “one of the few voices of reason in this country”.
“The problem is very simple. Besides supply chain issues, we have a problem with supply. So, what do we need for prices to cool down? We need supply. This is Economics 101,” he said.
He said removing a ceiling price would allow prices to temporarily rise, which would then produce a “signal of profitability” to producers.
“That signal will increase supply. And then prices will cool off again.
“But this is Econs 101. I don’t understand how it is possible that there are no advisers to politicians in the government who have passed a basic economics exam.” - FMT


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