Coconut Prices Expected to Improve by January 2025
Federal Agricultural Marketing Authority Takes Steps to Address Supply Shortage
PETALING JAYA: The Federal Agricultural Marketing Authority (Fama) anticipates the coconut supply shortage, resulting in rising prices, to improve by January next year.
Increased Import of Mature Coconuts from Indonesia
Fama chairman Aminuddin Zulkipli said to meet market demand, the authority’s subsidiary, Famaco, had increased the import of mature coconuts from Indonesia to 320 metric tonnes per month from December, compared with 180 metric tonnes previously. This measure has helped stabilise market prices and Fama’s monitoring indicated that the increasing import supply has begun balancing the market demand for coconuts.
Process Takes Time Due to High Demand
“However, this process will take time due to high demand during the festive season. Currently, the average price of mature coconuts in Peninsular Malaysia ranges from RM2.20 to RM2.93 each. The situation is expected to improve further, benefitting consumers by January 2025,” he said in a statement.
Consumers’ Association of Penang Raises Concerns
Yesterday, the Consumers’ Association of Penang (CAP) raised concerns about the rapid increase in the price of coconuts sold in Penang after its market survey found that the price of coconuts had gradually risen from RM2 to RM2.50, with larger coconuts selling at RM3.30 each. CAP president Mohideen Abdul Kader said the increase in coconut prices had also led to higher prices for coconut milk, up from RM12 to RM14 and even to RM15 per kg. The price of grated coconut had also gone up to RM11 per kg from RM8.
Call for Investigation into Price Hike and Supply Shortage
He urged Fama as well as the domestic trade and cost of living ministry to conduct an immediate investigation into the price hike and supply shortage.
Fama’s Efforts to Address Supply Shortage
Fama today said that the unpredictable weather over the past three months had disrupted coconut production in local plantations and exporting countries such as Indonesia. This situation has led to a supply reduction of up to 50% in several major markets, including the Klang Valley.
Collaboration with Stakeholders to Ensure Uninterrupted Supply Chain
Fama is intensifying its collaboration with various stakeholders, including importers, wholesalers, and retailers, to ensure an uninterrupted coconut supply chain. These initiatives include streamlining the logistics process for importing mature coconuts from Indonesia, which plays a key role in meeting market demand. “Simultaneously, continuous monitoring is being conducted nationwide to identify areas experiencing supply shortages,” it said.
Prevention of Smuggling Activities
Fama also said that it would continue working with the Malaysian quarantine and inspection services to prevent smuggling activities at the country’s borders.
Conclusion
The Federal Agricultural Marketing Authority is taking steps to address the supply shortage of coconuts, resulting in rising prices, by increasing the import of mature coconuts from Indonesia and streamlining the logistics process. The situation is expected to improve by January 2025, benefiting consumers.
FAQs
* What is the current price range for mature coconuts in Peninsular Malaysia?
+ The current price range for mature coconuts in Peninsular Malaysia is RM2.20 to RM2.93 each.
* What is the impact of the supply shortage on coconut milk and grated coconut prices?
+ The supply shortage has led to higher prices for coconut milk, up from RM12 to RM14 and even to RM15 per kg. The price of grated coconut has also gone up to RM11 per kg from RM8.
* What measures is Fama taking to address the supply shortage?
+ Fama is increasing the import of mature coconuts from Indonesia, streamlining the logistics process, and collaborating with stakeholders to ensure an uninterrupted coconut supply chain. Additionally, it is conducting continuous monitoring nationwide to identify areas experiencing supply shortages and preventing smuggling activities at the country’s borders.