KUALA LUMPUR, March 27 — The government is sourcing alternative fertiliser supplies to manage export restrictions due to the West Asia conflict, said Plantation and Commodities Minister Noraini Ahmad.
Russia and China – which collectively comprised 53 per cent of Malaysia’s fertiliser imports in 2025 – recently suspended fertiliser exports to prioritise domestic supplies in the Persian Gulf war that is now a month long.
Malaysia is a net fertiliser importer, having imported RM5.69 billion and exported RM3.75 billion in 2025. According to Noraini, Malaysia imports more than four to five million tonnes of fertiliser annually.
“To ensure continuity of supply in the near term, the Plantation and Commodities Ministry (KPK) has initiated aggressive efforts to expand fertiliser import sources through strategic negotiations with existing and new supplier countries,” Noraini said in a statement yesterday.
The ministry will also activate alternative supply channels in the next three to six months, besides ensuring that supply prices remain competitive to avoid pressure on industry players.
“These measures aim to reduce dependence on a single source and strengthen the resilience of the nation’s supply chain.”
KPK has also initiated engagements with local fertiliser producers to prioritise supply for the domestic market, stabilise prices through local production, and enhance the medium-term capacity of the national fertiliser industry.
“The government’s priority is to ensure sufficient fertiliser supply, protect smallholders, and guarantee that the national agri-commodity sector remains strong and resilient.”
Malaysia has limited domestic fertiliser production capacity that can only meet 39 per cent of its annual fertiliser use, according to Singaporean think tank S. Rajaratnam School of International Studies (RSIS).
Malaysia’s local fertiliser industry has also warned of supply disruptions. Malaysian fertiliser producers like Union Harvest and FGV Fertiliser Sdn Bhd, a subsidiary of palm oil company FGV Holdings, have halted new orders, as the prices of some raw materials reportedly increased by 100 per cent to 150 per cent within a fortnight.
Bloomberg recently reported that nations around the world are scrambling to secure fertiliser supplies to prevent a food crisis amid surging prices of urea, the most widely used nitrogen fertiliser.
World Trade Organisation (WTO) deputy director-general Jean-Marie Paugam told AFP in an interview that fertiliser supply disruptions from the Iran war posed a double threat to global food security through scarcity and high prices.
A third of the world’s fertilisers normally go through the Strait of Hormuz that has been blocked by Iran for four weeks now.
“Fertilisers are the number one issue of concern today,” Paugam told AFP.
The fact that Noraini issued the first government statement on fertilisers, instead of Agriculture and Food Security Minister Mohamad Sabu, indicates a potential fight between both ministries for scarce supplies for either cash or food crops.
Farmers’ associations previously warned of sharp increases in the prices of fruits and vegetables in Malaysia, potentially as high as 50 per cent, due to fertiliser shortages and diesel price hikes.
Malaysia is the world’s second biggest producer of palm oil after Indonesia.
Fertilisers account for more than half of production costs for palm oil planters, Reuters reported.
