KUALA LUMPUR, March 20 — China has reportedly restricted fertiliser exports amid the Iran conflict, which is likely to hit Malaysia hard because China is among the top source countries for Malaysia’s imported fertilisers.
According to international newswire Reuters, which reported the export ban, fertiliser shipments through the Strait of Hormuz, blocked by the war, comprise roughly one third of the sea-borne supply.
Citing International Trade Centre data, Reuters reported that a third of Malaysia’s fertiliser imports came from China last year.
Between half and three quarters of Chinese fertiliser exports overall last year are now restricted, Reuters reported, potentially up to 40 million tonnes. China is among the world’s largest fertiliser exporters.
According to data from the OEC portal, Malaysia imported RM5.69 billion worth of fertilisers in 2025. The main origins of Malaysia’s fertiliser imports are Russia (RM1.65 billion), China (RM1.35 billion), and Canada (RM653 million).
Malaysia is a net fertiliser importer, having imported RM5.69 billion and exported RM3.75 billion last year.
In a statement yesterday, the Fertiliser Industry Association of Malaysia (FIAM) warned of sustained cost escalation, supply rationing, and operational delays in the plantation and agriculture sectors, as a prolonged West Asia conflict could lead to severe disruptions in the Malaysian fertiliser market.
Bernama reported FIAM as saying that the West Asia region is a major supplier of natural gas, urea, ammonia, and sulphur – key materials for the global production of fertilisers.
Malaysian fertiliser producers like Union Harvest and FGV Fertiliser have halted new orders, as some raw materials reportedly increased by 100 per cent to 150 per cent in prices within a fortnight.
In his Hari Raya message today, Agriculture and Food Security Minister Mohamad Sabu acknowledged that the Persian Gulf conflict likely won’t end soon.
He noted that as oil and gas prices rise, logistics costs surge and the prices of fertiliser and global food commodities are also affected.
“What happens thousands of kilometres away can still be felt in the kitchens of Malaysian households,” Mohamad wrote on Facebook.
“Many analysts, both local and international, expect that this conflict will not be resolved anytime soon. This means that pressure on global food prices may persist. Therefore, I want to be honest with everyone: prices and the supply situation can change at any time.”
He reassured Malaysians that the country’s food supply was sufficient until May, just over a month away.
“The Ministry of Agriculture and Food Security, together with all relevant agencies, is monitoring stock levels, prices, and supply chains every day. If there are signs of disruption, we will not wait long,” Mohamad added.
“The government is prepared to take whatever intervention measures are necessary. Our priority is simple: food supplies must always be available in the market and the people must be able to access them.”
CodeBlue previously reported experts as saying that soaring fertiliser prices due to the West Asia conflict could push up the prices of vegetables, rice, chicken and eggs, and flour-based foods in Malaysia. About a third of Malaysia’s fertiliser imports pass through the Strait of Hormuz.
Poultry producers have also warned Malaysians about a potential rise in chicken and egg prices, besides reduced supply, because Malaysia relies heavily on imported feed ingredients, especially corn and soybean meal. Higher fertiliser prices increase the cost of growing feed crops.