Pic by TMR FILE PIX

THE increase in fertiliser and pesticide prices by almost 30% and 100% respectively were due to market forces, according to the Agriculture and Food Industries Ministry (MAFI).

Its minister, Datuk Seri Dr Ronald Kiandee (picture), said most of the fertilisers and pesticides used by local farmers are produced from raw materials such as nitrogen and sulfate were imported from foreign countries including China, the US, India and Indonesia.

He added that the changes in policy from the exporting countries are among the factors that influenced the rising prices.

“The price increases were due to policy changes from exporting countries which reduced supplies, increased costs of raw materials such as petroleum and natural resources, increase in logistic costs, as well as the exchange rate from foreign currency,” he told Dewan Rakyat yesterday.

He acknowledged the burden this has caused farmers and entrepreneurs as the cost of production has resulted in reduced income.

“A total of 276,621 farmers were affected by the rising prices of fruits and vegetables, crops, palm oil, flowers and spices with an affected area of 405,509ha of land,” he stated.

Meanwhile, about 356,000 paddy farmers with approximately 608,000ha of land were also affected.

“Generally, farmers experienced a 21% increase in agricultural input costs for vegetables and 7% for fruits, while paddy farmers experienced an 11.9% increase in costs mainly due to the increase in the price of pesticides,” he added.

Kiandee stated, however, Prime Minister Datuk Seri Ismail Sabri

Yaakob recently announced that the government will allocate RM262 million to assist the affected farmers.

“This includes the RM200 allocation for agrofood loans at zero interest rate with the six-month loan repayment moratorium to be channelled by Tekun Nasional and Agrobank.

“Also, RM62 million worth of allocation would be channelled through the National Farmers Organisation for the additional subsidy and paddy incentive under Budget 2022,” he further said.

Meanwhile, MAFI has proposed to the Finance Ministry (MoF) for more incentives for affected farmers.

“The proposal is still being staged for further scrutiny and discussion with the MoF,” he added.

He pressed that the government will continue to measure and address fertiliser and pesticide prices to ensure smooth productivity and delivery, as well as adequate supply with stable and affordable prices.