PUTRAJAYA: The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) will study the need to stop or limit the export of chicken eggs following the price increase in the domestic market.
Its minister Datuk Seri Saifuddin Nasution Ismail said further discussiosn would be held with the Agriculture and Agro-based Industry Ministry on the suggestion to stop the export.
“KPDNHEP will study whether the export of chicken eggs should be continued or not because of the price increase now and at the same time, there is an excess of production.
“Other factor besides cost is that we allow the export of eggs to countries such as Singapore, Hong Kong and Mauritius.
“We will study if stopping the export is reasonable or not, even if it is for a short term. If it helps to reduce the price of eggs and benefit the people, we will definitely look into it,” he said after the ministry’s monthly assembly today.
Saifuddin said there was a changing trend on the average price of chicken eggs between middle of last month and this month, where it had increased consistently every week in the retail market.
“Instructions were issued last Friday for an inspection operation to be conducted at the manufacturing, distribution and wholesale stages to trace the cause of the price increase.
“Section 21 of the Price Control and Anti-Profiteering Act 2011 Notices will be issued to businesses and if they are found to have increased prices intentionally for the purpose of taking unreasonable gains, they will be penalised under the same act,” he said.
He added the Malaysia Competition Commission (MyCC) was also ordered to check if the changes of chicken prices was caused by cartels.
Checks by the Veterinary Services Department found that the production of eggs was at 120 per cent, which meant it was more than enough for domestic consumption.
“Based on economic theory, if there is excess in production, there must be reduction of price. It looks like the theory is reversed in this case,” he said, adding that he would meet with chicken egg producers in the country to find a resolution to this issue.
Earlier in his speech, Saifuddin said on the first week of November, Grade A chicken eggs in Putrajaya increased from RM3.98 to RM5.11.
“Weather condition, ringgit value, price of feed and utility bills borne by the breeder were among the reasons for the price increase.
“On the third week of November, the price reduced to RM4.04 and the price remained until now,” he added.