Govt must tackle fertiliser cost spike, not shift burden to farmers

SANDAKAN: Tanjong Papat Assemblyman Alex Thien Ching Qiang has criticised the government for failing to provide a comprehensive solution to the ongoing surge in global fertiliser prices, warning that farmers are left to absorb the rising costs, which are ultimately passed on to consumers.
He stated that global agricultural supply chains remain under severe strain due to the Russia-Ukraine war, escalating Middle East tensions disrupting transport routes, and China’s tightened fertiliser exports, all of which have driven international prices sharply higher, with urea recording a nearly 60 percent increase.
Thien noted that rising crude oil and natural gas prices have further inflated manufacturing, logistics, and transportation costs, creating multiple layers of pressure that raise production expenses for farmers without guaranteeing them higher returns.
While the government has introduced measures such as the BudiI Agri-Komoditi programme to offset diesel costs, Thien pointed out that many grassroots farmers are unable to access the aid due to registration requirements and eligibility criteria, and no effective strategy has been put in place to tackle the long-term impact of rising fertiliser prices.
He proposed immediate interventions, including centralised government procurement of fertilisers, targeted subsidies, and improved price transparency, while urging medium-term efforts to boost domestic fertiliser production using Malaysia’s natural gas and palm oil biomass resources.
In the long run, Thien called for accelerated agricultural modernisation through smart farming, precision agriculture, drones, and LoT systems to improve efficiency, alongside a shift toward more systematic, large-scale farming to enhance the competitiveness of local produce.
He stressed that agriculture is a matter of national food security, warning that if production costs continue to rise unchecked, more farmers will exit the sector, domestic output will fall, and Malaysia’s reliance on imported food will deepen, ultimately hurting consumers nationwide. – James Leong

Thien noted that rising crude oil and natural gas prices have further inflated manufacturing, logistics, and transportation costs.