PETALING JAYA: The new ceiling price for chicken is expected to be capped below RM10 per kilogram so that the rise in price will not affect consumers especially the M40 and T20 groups who not receive the government’s cash aid, according to sources.

The revision of ceiling price for chicken is reasonable due to the sharp increase in chicken feed – soya beans and corn, as well as higher operating costs, according to sources.

With RM500 million of government subsidy, the ceiling price of chicken used to be RM8.90 per kg since Feb 5. This ceiling price is scheduled to end on June 30.

“The government needs to strike a balance between consumers, chicken farmers and middlemen,” said a source.

Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government would reset the new ceiling price in response to the concerns expressed by members of the public, hawkers and consumer groups after its decision to allow free-float of chicken prices.

The Prime Minister also announced cash subsidy of another RM100 for B40 families and RM50 for singles.

Deputy Minister of Domestic Trade and Consumer Affairs Datuk Rosol Wahid said after a meeting with industry representatives that the initial discussion was to cap the chicken price below RM11 per kg.

The new ceiling price for chicken should not exceed RM15 per kg, he said in an event in Hulu Terengganu.

Meanwhile, poultry breeders hope the new ceiling price for chicken can be set at RM10.80 per kg.

A breeder who declined to be named said the ceiling price of RM10.80 per kg was reasonable due to the increase in prices of feeds.

“If there is sufficient supply of fresh chicken, the price may be lowered to RM9 per kg,” he said.

Another breeder said it was impossible to make lucrative profits selling chicken.

“The farmers are mainly selling more with slim profits,” he said.

The Federation of Livestock Farmers Associations of Malaysia advisor Datuk Jeffrey Ng Choon Ngee said he hoped the government would not set the new ceiling price too low.

“Without subsidy for breeders, the government should not set the new ceiling price too low. Farmers will have problem supplying chicken below operating cost,” he explained.

Without government subsidy, the supply of chicken could be a big problem, he said.

Compared to Thailand, the price of chicken is still lower here, he said, adding that his association understands that consumers are facing financial burden and hopes the government will also look after the interest of poultry breeders.