Ministry of Internal Trade: Hidden fees for poultry farmers drive up prices in Terengganu


Workers transport chickens at a poultry farm in Sepang on June 2, 2022. — Photo by Miera Zulyana

Tuesday, June 14, 2022 7:04 PM MYT

KUALA NERUS, June 14 – The Terengganu Department of Domestic Trade and Consumer Affairs (KPDNHEP) has discovered that some poultry farmers are charging hidden fees to wholesalers, causing food prices to rise in the market.

Its manager, Saharuddin Mohd Kia, said they conducted a wholesale-level inspection and found that some farmers were charging 70 sen per kilogram (kg) of chicken to wholesalers to catch the birds.

This, he said, forced wholesalers to bear additional costs which would then be imposed on retailers and consumers.

“In the invoice, the price given by the farmers to the wholesalers is in line with the rate set by the government, which is RM5.60 per kilogram.

“Yet the breeders also charge an external or hidden fee of 70 sen per kilogram,” he said after inspecting one of the biggest poultry wholesalers in Terengganu.

Saharuddin said this should not have happened as the government gave special subsidies to herders to cover the costs of inputs, such as chicken feed imports, etc.

Thus, KPDNHEP will conduct an investigation immediately to see if the farmers have received government subsidies or otherwise.

“We are going to investigate this case because before the Movement Control Order (MCO) there were no such charges.

“When the farm starts imposing such charges, it will also affect wholesalers and retailers, who will also raise prices on the grounds that they have to bear the costs of transport, ice, plastic and chicken cutting,” said he declared.

Following this, he warned traders to comply with the maximum price regime for chicken, set until June 30.

It said its enforcement staff would carry out inspections at premises selling chicken and so far a total of 10 retailers and 12 wholesalers had received compounds for breaking the rules. — Bernama


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