FAMA TO IMPORT MORE COCONUTS FROM INDONESIA TO ENSURE ADEQUATE DOMESTIC SUPPLY

KUALA LUMPUR, Dec 24 (Bernama) -- The Federal Agricultural Marketing Authority (FAMA) has taken proactive measures to tackle the lack of coconuts in the market by boosting purchases of old coconuts from Indonesia to ensure adequate supply for domestic use, especially during festive seasons.

Its chairman, Aminuddin Zulkipli said in a statement that the authority, through its subsidiary FAMACO, has increased purchases of old coconuts from Indonesia to 320 metric tons from this month compared to the previous 180 metric tons.

This follows the drop in local coconut supply that reached up to 50 per cent in several major markets including the Klang Valley due to unfavourable weather in the past three months that affected the production of coconuts in local plantations and export countries.

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"Consistent imported supply since early December helped to stablise the price of coconuts in the market and based on FAMA’s monitoring, the measure is starting to balance up the demand for coconuts in the market.

"Yet the market balance process between supply and demand will take time due to high demand during festive periods. The situation is expected to recover and provide a positive impact on consumers by January 2025,” the authority said.

He said the current average price of old coconuts were between RM2.20 and RM2.93 each in Peninsular Malaysia, adding that the agency is also working with various parties, including importers, wholesalers and retailers to ensure the supply chain continues smoothly.

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"Continuous monitoring is being conducted throughout the country to identify areas suffering from a lack of supply, and also working with the MAQIS (the Malaysian Quarantine and Inspection Services) to curb smuggling at our country’s entry points,” the agency said.

The recent shortage in coconut supply was highlighted by a statement by the Consumers Association of Penang yesterday, in which it voiced concerns about the drastic rise in prices of coconuts.

-- BERNAMA