Malaysia's Agriculture and Food Security Ministry said fertiliser prices for crops like bananas could rise by up to 100 percent if the global energy crisis linked to Middle East conflicts continues to disrupt the Strait of Hormuz shipping route [1, 2]. Data since May 3 shows urea fertiliser prices have already increased 72 percent following tensions in the region [1, 2].

Fertiliser makes up the largest portion of production costs for farmers — accounting for 40 to 50 percent of costs in vegetable and fruit cultivation and about 13 percent for padi (rice) farming [1, 2]. Rising diesel prices due to the conflict have further boosted operational expenses, with diesel representing 70 to 80 percent of fishing boat costs, 20 to 50 percent of farm machinery costs, and 10 to 40 percent of pesticide and fertiliser processing costs [1, 2].

Agriculture Minister Datuk Seri Mohamad Sabu noted, "The threats and risks rising from dependence towards fossil fuels and petroleum-based products such as urea fertiliser and petrochemical materials definitely influence the country's food security in the long-term" [1]. He reiterated the government’s concern about "threats and risks" from dependence on petroleum-based agricultural inputs [2].

The government has raised short-term support to farmers by increasing monthly cash aid under the BUDI Agri-Komoditi and BUDI Diesel Individu schemes from 300 to 400 ringgit. Rice farming allowances for the 2026 planting season were also increased from 160 to 300 ringgit per hectare to help offset costs [2].

Long-term mitigation under the National Food Security Policy 2030 focuses on energy efficiency, lowering logistics costs, adoption of renewable energy, establishing fertiliser buffer stocks, and exploring domestic fertiliser production from industrial waste materials [1, 2].

The ministry warns that rising energy and fertiliser costs could reduce production capacity and productivity as farmers cut fertiliser use to control expenses. Maintaining resilience in the national food system amid volatile global energy markets remains a key government goal [1, 2].