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Consumers could face rising vegetable prices in the coming months, as escalating tensions in Iran disrupt the global supply chain, and also drive up the cost of fertiliser and other production costs.
Cameron Highlands Malay Planters Association chairman, Datuk Syed Abd Rahman Syed Abd Rashid, said the price increase for vegetables may happen in the next two weeks.
He estimated that the price hike may reach 50% for a moment before dropping slightly to 30%. Syed Abd Rahman said the association will continue to monitor the prices of vegetables in the market.
Meanwhile, the chairman of the Malaysian Islamic Users Association (PPIM) Nadzim Johan said we’re not at a stage where we need to start gardening or open our own vegetable farm. However, he advised everyone to watch their spending. To reduce family shopping costs, Nadzim said everyone can start with small plants on the balcony, kitchen, or garage.
He also suggested that the public buy more local vegetables, and for schools or school clubs to develop hydroponic projects.
How is the price of fertilisers affected by the current conflict?
Prof Fatimah Mohamed Arshad, a research fellow at the Laboratory of Agricultural and Food Policy Studies, Universiti Putra Malaysia (UPM), said the Strait of Hormuz is a key shipping route for fertilisers from Gulf countries.
According to Code Blue, a third of Malaysia’s fertiliser imports pass through the Strait of Hormuz. Fatimah said there will be a fertiliser shortage due to delayed shipments and higher fertiliser costs. Unlike oil, there are no reserves of fertiliser.
When farmers reduce the use of fertiliser to save production costs, it will then lead to lower agricultural output. The domino effect from a lower yield relies on importing goods.
Fatimah said Malaysia’s food supply is expected to remain stable in the short term. However, for rice, a staple food of the population, the buffer stock could last from five to seven months.
Agriculture and Food Security Minister Mohamad Sabu reiterated that the country’s food supply is stable since most of our imports are sourced from other Asean nations.
That said, the cost of fertiliser has been increasing since 2023. In 2023, a 50kg bag of fertiliser cost about RM85 to RM100, and it went up as high as RM213 in 2024.
The long-term effect of supply chain disruption
Since everything affects one another, the price of food, including fruits, chicken, and eggs, is about to go up, too.
Malaysia relies on imports for 60% of its food, with much of it coming from Thailand, China, and other large agricultural producers like Brazil and Argentina.
The price of animal feed will rise as well. According to Code Blue, feed accounts for about 60 to 70% of total production costs, and Malaysia heavily relies on imported ingredients such as corn and soybean meal.
Galen Centre for Health and Social Policy chief executive Azrul Mohd Khalib said there’s a need for more targeted and efficient policy responses instead of blanket subsidies.
That means helping the most affected producers, easing supply bottlenecks, improving access to working capital, and protecting vulnerable households without wasting public funds on broad-based subsidies.
Galen Centre for Health and Social Policy chief executive Azrul Mohd Khalib
Fatimah believes fertiliser costs should be the top policy priority given their direct impact on crop yields. She also urged targeted support for farmers and thinks that Malaysia should expand its national food stockpiles to buffer against global supply disruptions.
As for animal feed, Fatimah said Malaysia could turn to alternative ingredients like palm kernel cake, cassava, and insects.
The long-term strategy is to reduce dependence on imported products, but invest in domestic production, and strengthen trade with Asean partners.
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Heads Up, Malaysia! Here’s Why Your Groceries May Cost More Soon
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