KUALA LUMPUR, June 26 — Fertiliser prices in Malaysia have risen following the conflict in West Asia and disruptions to global trade, although domestic price increases remain below international levels because suppliers are still selling stock acquired before the conflict.
In a written Dewan Rakyat reply on Monday (June 22), Agriculture and Food Security Minister Mohamad Sabu said global fertiliser prices have surged due to the conflict in West Asia, with nitrogen-based fertilisers recording the steepest increases compared with phosphate- and potassium-based fertilisers.
“Monitoring by the Department of Agriculture until May 2026 shows that increases in the prices of major fertilisers remain lower than those in international markets because companies are still selling stock acquired before the conflict,” Mohamad said in response to Ipoh Timor MP Lee Chuan How’s question on fertiliser imports and prices.
Compared with the average prices between January and March this year, urea prices increased by 28.8 per cent, while muriate of potash (MOP), a potassium fertiliser, rose by 21.7 per cent.
Separately, the ministry said nationwide monitoring at the end of May found fertiliser prices had generally increased by between 2 per cent and 12 per cent compared with the January-March period, while pesticide prices rose by between 0.5 per cent and 44 per cent over the same period.
Mohamad acknowledged that rising fertiliser and pesticide prices had increased production costs in the agri-food sector, although the impact varied depending on crop type and other production factors.
“It cannot be denied that increases in NPK fertiliser and pesticide prices have led to higher production costs in the agri-food sector. However, the level of impact differs according to crop type and production factors,” Mohamad said in a reply to Jempol MP Shamshulkahar Mohd Deli’s question on rising agricultural input costs.
NPK fertiliser is a compound fertiliser containing nitrogen, phosphorus and potassium, three nutrients essential for plant growth.
Mohamad added that the ministry would continue monitoring the situation to ensure food supplies and prices were not significantly affected.
According to the Fertilizer Industry Association of Malaysia (FIAM), almost all basic fertilisers and raw materials used in Malaysia are imported, except for some granular urea produced domestically using local natural gas.
Malaysia’s main fertiliser suppliers include countries in the Middle East, China, Russia, Canada, Belarus, Jordan, Germany and Japan.
Based on estimated fertiliser consumption in 2025, the oil palm sector accounted for 84 per cent of national fertiliser use, followed by the paddy sector at 7 per cent. The remaining 9 per cent was used by the rubber, vegetable, fruit and other crop sectors.
Mohamad said information from the fertiliser industry showed that current inventories and existing supply contracts were sufficient to meet the needs of the agriculture and commodities sectors, subject to smooth global supply chains and suppliers fulfilling their delivery commitments.
Among the measures introduced to mitigate rising input costs, the government increased the ploughing incentive and the pesticide incentive for paddy farmers from RM160 to RM300 per hectare per season.
The ministry is also encouraging a transition to organic fertilisers, biofertilisers and Effective Microorganisms (EM), promoting soil testing and precision agriculture, supporting the local compost industry, and strengthening agricultural extension services.
Mohamad said the ministry would continue monitoring fertiliser supplies and prices while strengthening the diversification of import sources to ensure supply stability and resilience.
He added that the government was drafting a Fertiliser Bill to regulate fertiliser quality standards, distribution chains and ensure supply stability.
Heavy Reliance On South American Feed Imports ‘Not A Food Security Threat’
Separately, the minister said Malaysia remained heavily reliant on imports for key livestock feed ingredients.
Responding to a question from Pasir Puteh MP Nik Muhammad Zawawi Salleh on Malaysia’s reliance on imported feed ingredients, Mohamad said Argentina supplied 94.25 per cent of Malaysia’s soybean meal imports, while 82 per cent of grain corn imports came from Argentina and another 15 per cent from Brazil.
Mohamad said Malaysian manufacturers continued sourcing soybean meal and grain corn from Argentina because of their consistent quality and reliable supply, as well as existing contractual arrangements.
“However, this does not threaten the national food security policy because Malaysia can also import soybean meal from other countries such as the United States, China, Brazil and Canada,” Mohamad said.
He added that grain corn could also be imported from countries including the United States, China, India and Thailand.
The ministry is seeking to reduce dependence on imported grain corn through the National Grain Corn Policy, which aims to cut grain corn imports by 30 per cent by 2040. Achieving the target would require the development of 136,527 hectares of cultivation area to produce 1.25 million metric tonnes of grain corn annually.
