KUALA LUMPUR: The pricey chicken went from RM10 to RM9 in a split second as soon as officers from the Domestic Trade and Consumer Affairs Ministry inspected the wet market.
This was the scene at the Chow Kit market here at about 9.30am. Some traders were selling chicken way above the ceiling price of RM 9.40 per kg under the floating price mechanism.
New Straits Times journalist who went there in the morning observed some traders removing price placards with new price placards at their stalls. Others pasted new price labels on top of previous labels displayed on produce.
They did this because they wanted to avoid potential fines from enforcement officers who were making their way from one end of the market to the other in an operation.
Their actions made it look like they have done it before.
Beginning today, consumers can buy chicken at about RM9.40 to RM10 per kg, while restaurant vendors and others can buy chicken supplies in bulk at a slightly lower price of RM8.50 per kg.
Nov 1 marks the implementation of the floating price mechanism for chicken, following the removal of its subsidies, as announced by Agriculture and Food Security Minister Datuk Seri Mohamad Sabu on Monday.
The termination of subsidies considered the current supply and price trends, and the cost of chicken production which has begun to stabilise.
However, the government had said it will consider reimplementing ceiling prices, either through subsidies or without subsidies, if the chicken prices are out of control, Domestic Trade and Consumer Affairs Ministry secretary-general Datuk Seri Mohd Sayuthi Bakar said that day.
Chicken sellers today voiced concerns about the potential impact of this measure, which could affect their businesses.
Sazali Latip, 62, who has 10 years experience in the business, believes the control of chicken prices could lead to intense competition among traders, which might have adverse effects.
"For now, we are uncertain whether chicken prices will remain at their current level or increase. What is certain, however, is there will be increased competition among sellers since they all source their supplies from different suppliers.
"If their suppliers offer lower prices, they can also offer lower prices compared to other traders.
"This is a concern for us as traders since we do not have a fixed price," he told NST.
Sazali said even if chicken prices rose suddenly, the demand for chicken would remain high.
"People will continue to purchase chicken even if the price is high. I have once sold chicken for RM10.50 per kg, and many people still bought it,"
"Our business is still running well, but we need to be prepared for various possibilities, including increased competition with other traders."
Noraini Mat Jani, 50 said she might contemplate raising chicken prices if suppliers and other traders introduce new pricing structures.
"The fluctuation in chicken prices is a common occurrence. Currently, the prices remain reasonable, but we cannot be certain how long they will stay this way.
"Presently, prices are not controlled, allowing suppliers to increase prices as they see fit. This situation can be troublesome, but we must accept the government's decision," she explained.
Another chicken seller known only as Latif, 25, said the floating price mechanism could bring new risks and uncertainty in market prices.
"When the price of chicken is no longer controlled, our greatest fear, as sellers, is uncertainty.
"There are various possibilities, as we lack the power to determine the price; suppliers may raise or lower the price.
"We are still uncertain about the percentage by which we need to increase chicken prices at this time. So far, there have been no significant changes from the suppliers; we may need to wait a few more days."
Latif said significant changes might be observed as the Deepavali approaches in more than 10 days.
"This is because the high consumer demand can prompt suppliers to impose higher prices than the current rate, which is around RM9.40 and higher."