Government is extremely concerned with the exorbitant increase in chicken prices charged by a few unscrupulous traders in the last few days.
It is clear that some of these traders have tried to take unfair advantage of vulnerable consumers and to some extent sensationalise the VAT increase for reasons better known to them.
Government had formed a price surveillance taskforce comprising of FCCC, FRCS and the Ministry of Finance to monitor prices after the budget announcement, and we have clearly noted a disproportionately large increase of over 30 percent in chicken prices in the last 2 days charged by few unscrupulous traders.
While chicken prices should have only increased by 6 percent given the increase in VAT from 9 to 15 percent, these businesses in their own commercial interest went ahead to increase prices by over 30 percent.
This is unacceptable and we thank those industry stakeholders that have come out quickly to clarify this issue. We expect that the market will immediately rectify this anomaly. I have also been advised by FCCC and have also got assurance from some of the industry players that chicken prices will be brought down immediately.
However, I wish to remind businesses that this kind of unscrupulous behaviour seen in the last 2 days is highly unacceptable.
We wish to remind the industry stakeholders that the poultry industry is highly protected by Government with a 32 percent fiscal duty and a 10 percent import excise duty. This is a total tariff protection of 42 percent and we are only doing this to ensure that our citizens get affordable and high quality chicken products from the domestic market. Similarly, the chicken wholesale and retail market is unregulated as we believe that there is sufficient competition in the market to avoid carteling and price fixing.
However, we are closely monitoring this situation and if need be, Government is prepared to take tough measures on those trying to distort the market.
𝐇𝐨𝐧. 𝐁𝐢𝐦𝐚𝐧 𝐏𝐫𝐚𝐬𝐚𝐝
𝐃𝐞𝐩𝐮𝐭𝐲 𝐏𝐫𝐢𝐦𝐞 𝐌𝐢𝐧𝐢𝐬𝐭𝐞𝐫 𝐚𝐧𝐝 𝐌𝐢𝐧𝐢𝐬𝐭𝐞𝐫 𝐟𝐨𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐞