KUALA LUMPUR, March 25 (NNN-Xinhua)- Fruit prices in Malaysia are set to rise as transport disruptions linked to the Middle East conflict ripple through global supply chains.
Shipping disruptions in the Middle East have driven fruit farmers to purchase more expensive chemical fertilizers, local media Sin Chew Daily quoted Koh Lai Ann, president of the Federation of Malaysia Fruit Farmers Association, as saying recently.
“In just two weeks, the price of fertilizer raw materials has surged by 100 percent to 150 percent. If the conflict continues and suppliers are unable to deliver their goods, Malaysian fruit farmers could face a situation where they have the money but cannot buy fertilizer,” he said.
According to him, the higher input costs are expected to weigh on production, potentially leading to a significant drop in supply and pushing prices higher for consumers.
Koh said the knock-on effects of the conflict could lift fruit prices in Malaysia by 20 percent or more. He also said export-oriented fruits that rely on overseas sales, such as durian and jackfruit, will face even greater risks, as they must also contend with soaring shipping and insurance costs in addition to fertilizer expenses.
He noted that the Middle East is a key production hub and transit route for fertilizer raw materials. Ongoing instability has disrupted shipping through the Suez Canal and the Red Sea, prompting some Malaysian fertilizer suppliers to halt new orders since mid-March, he added.
–NNN-Xinhua