Malaysia taking steps to boost fertiliser supply, says minister

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KUALA LUMPUR – Malaysia, a top exporter of palm oil, is applying measures to shore up fertiliser supply after the Middle East conflict and China’s export restrictions drove up raw material costs and caused a domestic supply crunch, its government said on March 26.

The government will look to expand fertiliser imports through negotiations with existing and new supplier countries, Plantation and Commodities Minister Noraini Ahmad said in a statement.

Authorities will seek to activate alternative supply channels in the next three to six months and ensure supply prices remain competitive to avoid pressure on industry players, she said.

Fertiliser makers in Malaysia last week suspended new orders as supply chain disruptions and feedstock shortages stemming from the Middle East conflict drove up raw material costs.

Malaysian rice farmers also faced production cuts due to a more than 50 per cent increase in urea fertiliser prices as China restricts fertilisers exports.

“These measures aim to reduce dependence on a single source and strengthen the resilience of the nation’s supply chain,” Ms Noraini said.

Malaysia imports more than four million to five million tonnes of fertilisers annually, according to the ministry, which estimates its market value exceeds RM5 billion (S$1.6 billion) each year.

Ms Noraini said the government was engaging local fertiliser producers to prioritise supply for the domestic market, stabilise prices through local production and increase medium-term capacity of the fertiliser industry.

The government would continue to monitor global developments and take proactive measures to safeguard Malaysia’s interests, Ms Noraini added. REUTERS