Fruit prices in Malaysia set to rise as fertiliser supplies dry up amid Middle East conflict

The ripple effects of the conflict are expected to push local fruit prices up by 20% or more, says Koh Lai Ann, president of the Federation of Malaysia Fruit Farmers Association.

Sin Chew Daily

Sin Chew Daily

      

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Fruit farmers predict that local fruits will be more expensive due to lower production. PHOTO: SIN CHEW DAILY

March 24, 2026

KUALA LUMPUR – The impact of the Middle East conflict is increasingly being felt closer to home.

Shipping disruptions caused by the conflict see farmers buying more expensive chemical fertilisers for fruit cultivation, said Koh Lai Ann, president of Federation of Malaysia Fruit Farmers Association.

As a result, local consumers may soon be forced to pay more for fruit as production shrinks significantly.

He said the ripple effects of the conflict are expected to push local fruit prices up by 20% or more.

He told Sin Chew Daily that the Middle East is a key production hub and transit point for fertiliser raw materials where ongoing instability has disrupted shipping routes through the Suez Canal and the Red Sea, prompting some Malaysian fertiliser suppliers to suspend new orders since mid-month.

“In just two weeks, fertiliser raw material prices have surged by 100% to 150%,” he said.

He warned that if the conflict continues to hinder shipments, Malaysian fruit farmers may face a situation of no fertilisers.

“Even with money, fertiliser cannot be purchased,” he said.

Koh explained that delays in fertiliser supply would directly disrupt fertilisation schedules, which are critical in fruit production.

Missing the proper timing could result in poor fruit development, higher fruit drop rates, and even weakened trees due to insufficient nutrients.

“This will not only reduce yields in the next season by an estimated 15% to 20%, but may also affect the long-term productivity of fruit trees,” he said.

With output expected to decline sharply, he said local fruit supply could face serious shortages.

Prices may rise by 10% to 20%—or even more—within the next three to six months, he said.

Fertilisers account for 30% to 50% of production costs and rising fuel prices pushing up logistics costs will see overall production costs to surge by at least 30%, he said.

“Farmers are also reducing the use of chemical fertilisers and seeking organic alternatives, but this can only serve as a temporary measure,” he added.

Koh said export-dependent fruits such as durian and pineapples face even greater risks. In addition to higher fertiliser costs, they must also contend with surging freight and insurance charges.

“With shipping routes being diverted away from the Red Sea, container allocation has become extremely difficult. Delays in export logistics pose a critical challenge for fruits that require freshness,” he said.

He added that the Ministry of Agriculture and Food Security convened an emergency consultation meeting on the Mac18 chaired by Secretary-General Datuk Seri Isham Ishak, bringing together major fertiliser supplier associations, industry representatives, and state agriculture officials to discuss the impact.

“The association highlighted the sharp increase in fertiliser and diesel costs, as well as the severe squeeze on profit margins,” he said.

Koh said the ministry has taken the feedback seriously and pledged to follow up in greater detail after Hari Raya Aidilfitri to explore appropriate response measures.

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