Fahmi: Cabinet backs rolling back egg subsidy as supply has normalised since Covid-19 pandemic
PUTRAJAYA, April 30 — The decision to roll back subsidy for eggs was made after the supply chain showed signs of normalising since years of Covid-19 lockdowns disrupted production, Communications Minister Fahmi Fadzil said today.
'In the previous Cabinet meeting, ministers were reminded that egg prices were only subsidised during the pandemic that caused problems to supply,' he told reporters at today's post-cabinet meeting here.
'So we decided since supply and stock have shown a positive trend, the cabinet decided not only rolling back would save cost, but also considering supply now have surpassed demand,' the minister added.
Earlier, the government said it has decided to fully discontinue the egg subsidy starting this August 1.
In a statement, the Ministry of Agriculture and Food Security announced that price controls on eggs will be lifted, and the subsidy will be reduced from RM0.10 to RM0.05 per egg effective tomorrow, before being fully withdrawn in August.
The decision was made after considering the industry's commitment to ensuring sufficient and stable egg production, following stabilised production costs.
He said the country has spent more than RM3 billion since February 2022 in subsidies for chicken and chicken eggs.
The subsidy for chicken was terminated on November 2023, following which, the supply and price of chicken became more stable.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
4 hours ago
- The Star
Demand for Idul Adha sacrificial livestock drops amid economic slowdown in Indonesia
JAKARTA: Livestock farmers and traders across various regions have complained about a sharp drop in demand for sacrificial livestock during the Idul Adha (Day of Sacrifice) holiday, amid the country's ongoing economic slowdown. Uday, a 41-year-old sheep trader in Bandung, West Java, said he had sold only one sheep on Thursday (June 5) morning, the day before Idul Adha, which falls on Friday (June 6) this year. [The Indonesian government had announced that the Idul Adha (Day of Sacrifice) holiday for the country this year fell on June 6] 'The day before the holiday is usually my busiest and most profitable with buyers typically arriving nonstop even before sunrise. Last year, I sold up to 25 sheep on this day. But today, only one buyer has come to my stall all morning,' he said, as quoted by Kompas. Uday, who prices his sheep between Rp 3 million (US$184) and Rp 5 million each, said he had sold only 10 animals over the past four days, marking a steep drop from last year, when he sold up to 50 sacrificial animals in the lead-up to the holiday. Subari, a cow seller in Batang Regency, Central Java, shared a similar struggle, saying he had managed to sell only 16 cows two days before Idul Adha. 'Last year, I sold 40 cows. But this year, people don't seem very interested in buying sacrificial animals, likely due to the tough economic conditions,' he said on Wednesday. Nizar, a cow farmer from Anambas Islands Regency in the Riau Islands, said his income had dropped sharply compared with last year. 'There are very few buyers this time, a stark contrast to last year. So far, I've only managed to sell four cows. In previous years, I would have already sold 20 to 30 by now,' he said on Wednesday (June 4), as reported by Tribunnews. Galang Saputra, a cow seller at Jetis Animal Market in Ponorogo Regency, East Java, reported that cow prices have fallen by Rp 1 million to Rp 1.5 million ahead of the Idul Adha holiday. 'Instead of rising, prices have dropped due to weak demand,' he said on Wednesday. Sellers at the market have also completely eliminated transportation fees for moving livestock after purchase in hopes of attracting more customers, but with little success. The Institute for Demographic and Affluence Studies (Ideas) estimates that 1.92 million people purchased sacrificial livestock this year, marking a decline of 233,000 buyers or around 12 percent compared with last year. This figure is even lower than during the Covid-19 pandemic, when the institute reported 2.11 million buyers in 2021 and 2.17 million buyers in 2022. Ideas managing director Haryo Mojopahit attributed the decline to a shrinking middle and upper-income class, the primary buyers of sacrificial animals. 'The large-scale purchase of sacrificial animals during Idul Adha is vital to the growth of the country's livestock sector. This sector provides an important source of income for rural communities and acts as a key driver of the local economy,' he said on Monday, as reported by Antara. Haryo added that since the meat from sacrificial animals is mostly distributed to low-income families, Idul Adha also helps narrow the significant gap in red meat consumption between high- and low-income households. A 2024 Ideas survey revealed that individuals in high-income families consume an average of 4.17 kilogrammes of red meat per year, while those in low-income families consume only 0.009 kg annually. Economists said consumer spending power in Indonesia has steadily weakened over the past two years. Wage increases in vital sectors, such as manufacturing, trade and agriculture, have lagged behind rising prices. The situation has been exacerbated by widespread layoffs, including in the primary sector. The country's economy recorded its slowest quarterly growth since Q3 2021, expanding by 4.87 percent. Meanwhile, household spending, which constitutes over half of the nation's gross domestic product (GDP), rose by just 4.89 percent year-on-year in the first quarter of 2025, marking the slowest growth in five quarters, despite increased consumer activity during the Ramadan and Idul Fitri celebrations in March. Overall GDP growth from January to March slowed to 4.87 percent year-on-year, down from 5.02 percent in the previous quarter. - The Jakarta Post/ANN
The Sun
a day ago
- The Sun
Aidiladha, a time for reflection, strengthening of brotherhood, says Fahmi
KUALA LUMPUR: Aidiladha should serve as an opportunity for self-reflection to demonstrate sincere devotion to Allah SWT and to strengthen Muslim brotherhood, Communications Minister Datuk Fahmi Fadzil said. In a Facebook post today, he said Aidiladha reminds Muslims of the profound sacrifice of Prophet Ibrahim A.S and his son, Prophet Ismail A.S, who upheld Allah's command with utmost sincerity and trust. 'Aidiladha is a symbol of devotion and sacrifice... may this Aidiladha be an opportunity for us all to reflect and express sincere devotion to Allah SWT,' the post read. Fahmi also prayed that all acts of worship by Muslims be accepted by Allah SWT on this blessed day. Muslims in Malaysia celebrate Aidiladha tomorrow.
Barnama
a day ago
- Barnama
Aidiladha A Time For Reflection, Strengthening Of Brotherhood, Says Fahmi
KUALA LUMPUR, June 6 (Bernama) -- Aidiladha should serve as an opportunity for self-reflection to demonstrate sincere devotion to Allah SWT and to strengthen Muslim brotherhood, Communications Minister Datuk Fahmi Fadzil said. In a Facebook post today, he said Aidiladha reminds Muslims of the profound sacrifice of Prophet Ibrahim A.S and his son, Prophet Ismail A.S, who upheld Allah's command with utmost sincerity and trust. 'Aidiladha is a symbol of devotion and sacrifice... may this Aidiladha be an opportunity for us all to reflect and express sincere devotion to Allah SWT,' the post read.
