Malaysia's fertiliser supply is under pressure following export restrictions by Russia and China, two of its main suppliers.
Russia has suspended ammonium nitrate fertiliser exports from March 21 to April 21 to prioritise domestic supply during the spring fieldwork period. Supplies under intergovernmental agreements are exempt. The Agriculture Ministry stated, "The suspension of exports will allow priority supply to the domestic market during the spring fieldwork period and ensure its uninterrupted progress amid rising export demand for nitrogen fertilisers."
China has also restricted fertiliser exports to support domestic demand as the West Asia conflict continues.
Malaysia imported fertilisers valued at RM5.69 billion, equivalent to about US$1.21 billion, in 2025. Russia accounted for RM1.65 billion (US$351 million), China RM1.35 billion (US$287 million), and Canada RM653 million (US$139 million). In 2023, Russia supplied ammonium nitrate worth US$15.5 million, representing about 42 per cent of Malaysia's total imports of US$36.7 million for that product.
Malaysia's domestic fertiliser production meets around 39 per cent of annual demand, according to previous assessments. This leaves the sector exposed to supply disruptions linked to international trade and geopolitical developments.
Further pressure comes from disruptions in the liquefied natural gas trade, as LNG is a key input in the production of urea, the most widely used nitrogen fertiliser.
Malaysian producers, including Union Harvest and FGV Fertiliser, have halted new orders as raw material prices have increased by 100 per cent to 150 per cent within a short period.
Farmers' associations have warned that fertiliser shortages and higher diesel costs may affect production costs. Vegetable prices are expected to increase by 50 per cent within one to two weeks, while fruit prices may rise by 20 per cent within three to six months.
The Ministry of Agriculture and Food Security has not issued a statement on fertiliser availability. The minister indicated that food supplies for Hari Raya Aidilfitri are sufficient, while referencing oil price increases and logistics costs.
Source: CodeBlue
