Ministries set up joint committee to stabilise fertiliser, pesticide prices

PUTRAJAYA: A joint committee on the issue of rising fertiliser and pesticide prices has been set up by the Ministry of Agriculture and Food Industries (MAFI) and the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).

The committee is studying proposed actions and solutions as well as other measures to help farmers and small entrepreneurs who are facing the issue of a sudden increase in fertiliser and pesticide prices.

In a joint statement on Saturday, the two ministries said the issue of rising fertiliser and pesticide prices that had cropped up since the Covid-19 pandemic was taken seriously.

“Fertilisers and pesticides are agricultural inputs and important components in the production of quality crops that are safe to eat by the people of Malaysia. Most of the fertilisers and pesticides used by farmers are made from raw materials imported from overseas such as nitrogen, phosphate and potassium,” according to the statement by Agriculture and Food Industries Minister Datuk Seri Dr Ronald Kiandee and Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi.

The statement said based on discussions and engagement sessions held with stakeholders and industry players, among the causes that had been identified on the issue were policy changes from exporting countries, rising raw material costs, logistical disruptions and market speculation.

“When the supply of fertilisers and pesticides decreases in the market due to constant demand from farmers, then price increases occur along the supply chain of the product,” the statement said. — Bernama