Egg prices up, ministry checks for cartel elements

PUTRAJAYA: The Ministry of Domestic Trade and Consumer Affairs ( KPDNHEP) will investigate if there are elements of cartel activities causing the price of eggs to increase consistently each week for the past several months.

Its minister Saifuddin Nasution Ismail said action could be taken under the Competition Act for cartel activities like price fixing, division of territories, and joint efforts by producers and wholesalers to limit production.

Saifuddin said the ministry had received many complaints from consumers including those in Penang, Sarawak and Putrajaya, about the increase in the price of eggs especially in mid November.

“In the first week of November, the price of grade A eggs in Putrajaya increased from RM3.98 (10 eggsi) to RM5.11.

“In the third week, it went down to RM4.04. After that it has remained at around RM4,” he said in a press conference held after the ministry’s monthly gathering here yesterday.

He said among the reasons given by the producers and wholesalers was the weather, the value of the Ringgit, the high cost of chicken feed and the increase in utility costs of chicken rearers.

Saifuddin said the ministry had conducted checks at the production, distribution and wholesaler stages throughout the country since Friday to find out the cause of the price increase.

“If the traders are purposely increasing the price of eggs in order to make exorbitant profits, the ministry will not hesitate to take action under the Price Control and Anti-Profiteering Act 2011,” he said.

He added that the ministry will also hold talks with the MyCC and the Veterinary Services Department to determine effective measures to tackle the increase in price, including the weather and disease factors.