How much has the government spent on chicken and egg subsidies since February 2022?

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Government Expenditure on Chicken and Egg Subsidies Totals RM3.8 Billion Since February 2022

The Malaysian government has allocated RM3.8 billion towards subsidies for chicken and eggs since February 2022. This significant expenditure was incurred during a period when temporary price controls were in effect for these essential food items. The intention behind these subsidies was to manage market supply and retail prices, a measure that has been in place for nearly two years.
Rationale for Lifting Price Controls

The decision to propose the removal of temporary price controls on chicken and eggs is aimed at allowing the market mechanism to ensure a continuous supply of these commodities. According to Deputy Agriculture and Food Security Minister Chan Foong Hin, the production of poultry and eggs in Malaysia has historically achieved self-sufficiency. While supply chain disruptions occurred towards the end of last year, government interventions have since restored the sector to normalcy, making price controls no longer deemed necessary as retail prices are now below the set ceiling.
Rationale for Subsidy Allocation

The substantial RM3.8 billion spent on subsidies underscores the government's commitment to supporting the agricultural sector. Chan believes that the agricultural sector is inherently commercial and requires development that aligns with market forces. He expressed confidence that removing price controls will foster growth and development within the chicken and egg farming sector, potentially enabling it to supply not only domestic needs but also export markets.
Future Market Dynamics and Support

The Ministry of Agriculture and Food Security (KPKM) plans to engage with industry stakeholders, including the Federation of Livestock Farmers Associations of Malaysia (FLFAM), to discuss a smooth transition before chicken and egg prices are fully liberalised. Furthermore, the government views the rationalisation of subsidies within the agro-food sector as crucial. This strategic adjustment aims to ensure that benefits reach farmers, padi cultivators, breeders, and fishermen, while also enabling more efficient channeling of funds to targeted groups, thereby supporting the development of the commercial agricultural economy.

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How much has the government spent on chicken and egg subsidies since February 2022?

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