Chicken and Egg Prices to be floated after June

Agriculture and food security minister Mohamad Sabu says this part of the government's efforts to overcome food shortages in the country. Chicken and egg prices are expected to be floated after June as part of the governments' efforts to overcome food shortages, says Agriculture and Food Security Minis Even now it sufficient but in five- or six-months' time, it will be more sufficient if no new undesirable matters (such as disasters) arise, "he said in an interview in Kuala Lumpur.

In January, Mohamad reportedly said that his ministry was studying the need to float the price of eggs in the market and provide targeted subsidies to the B40 group and that discussions were being held with the finance ministry, the economy ministry and his own ministry.

The current retail ceiling price in Peninsular Malaysia for standard chicken is RM9.40 per kg whi for eggs, it is 45 sen for Grade A, 43 sen for Grade B and 41 sen for Grade C. In Langkawi, Sabal Sarawak and Labuan, the maximum price differs based on zones and districts.

Meanwhile, on grain com which is almost entirely imported from Argentina and Brazil, affecting the price of chicken and eggs, Mohamad said the government was encouraging its cultivation in Malaysia this year.

"In a few more months (grain corn crops) will start yielding. and there are already companies that want to implement (the purchase of grain corn) similar to (the agricultural model of Padiberas Nasional Berhad (Bernas)," he said, adding that studies on grain com cultivation are being carried out in Perlis.

On Budget 2023 which will be tabled this Friday. Mohamad said he hoped there would be no reduction in the amount allocated to his ministry.

Prior to the 15th general election at the end of last year, the government led by Ismail Sabri Yaakob announced Budget 2023 with a total allocation of RM372.3 billion.

Of the amount, RM5.32 billion was allocated to the agriculture and food industries ministry.ter Mohamad Sabu.

He said the prices would be floated so that the domestic trade and cost of living ministry could monitor and assess fluctuations in the price of the goods compared to the current ceiling price.

*We are confident that the agriculture and food security ministry will satisfy the demand for chicken and eggs (through pricefloating).

Question 1

What is price ceiling policy? List at least 3 items that have been subject to price ceiling policy in Malaysia.

Question 2

The ceiling price of standard chicken in the retail market is RM9.40 per kilogram in Peninsular Malaysia. Assuming the production costs increase, causing the market price for standard chicken to rise to RM10.50 per kilogram, how will this impact the quantity demand and quantity supplied? When considering the enforcement of the price ceiling policy, would there a shortage or surplus in the market? Please include a diagram in your response.

Question 3

Please provide a brief discussion of the pros and cons of implementing a price ceiling policy.

Question 4

The government has declared the elimination of price controls on chicken. How does this measure contribute to strengthening food security?