SHAH ALAM - Malaysia’s agriculture sector, particularly smallholders, is facing increasing pressure as global fertiliser supply disruptions intensify.
These challenges, driven by geopolitical tensions and trade restrictions, have prompted renewed attention on local alternatives such as organic fertilisers developed by Indah Water Konsortium (IWK).
Rising geopolitical tensions, including conflicts in the Middle East and export restrictions imposed by major producers, have significantly disrupted global fertiliser supply chains.
According to the World Trade Organization, these developments posed a dual threat to global food security by contributing to both supply shortages and rising costs.
In Malaysia, the impact has been immediate. Farmers are grappling with increasing fertiliser prices and uncertain supply, particularly as the country produces only about 39 per cent of its fertiliser needs domestically, leaving it heavily reliant on imports.
Deputy Prime Minister Datuk Seri Fadillah Yusof highlighted the broader implications during the launch of the National Food Security Policy 2030.
“When input costs rise, it triggers a domino effect, leading to global food price inflation. This is the burden ultimately borne by the people. Our dependence on external supply chains makes us vulnerable to global economic shocks,” he said.
Malaysia’s dependence on imported fertilisers has been further strained by tightening export controls from China, a key supplier, as well as disruptions along critical shipping routes such as the Strait of Hormuz, which handles a significant portion of global fertiliser trade.
Local fertiliser producers had reportedly halted new orders as raw material prices surged between 100 and 150 per cent within weeks, compounding challenges for farmers.
While large-scale producers may have the capacity to absorb such shocks, smallholders who operate on tighter margins face greater vulnerability. For them, consistent fertiliser access is essential to sustain yields and livelihoods.
In response to these pressures, IWK has introduced an organic fertiliser derived from biosolids produced at sewage treatment plants. Research conducted by its Indah Water Research Centre demonstrated the product’s effectiveness across multiple crops and conditions.
Greenhouse trials showed improved plant growth and soil quality across both ornamental plants and food crops, with no detection of heavy metals in plant tissues. Field studies further reinforced these findings.
At a coconut farm, trees previously affected by extreme heat stress showed recovery after five months of treatment, with new leaf growth and resumed fruit production. Meanwhile, a separate 15-month trial involving Napier grass recorded strong vegetative growth and increased biomass output.
IWK chief executive officer Narendran Maniam emphasised the economic and practical benefits of the solution, particularly for smallholders.
“These solutions demonstrate how rich IWK’s organic fertilisers are, it can support smallholder recovery and improve crop resilience. In fact, in the coconut farm trial, IWK’s fertiliser was applied once every two weeks, which resulted in an estimated 68 per cent reduction in fertiliser costs purchased from other vendors.
“This is a significant advantage for farmers operating under tight margins. Rather than relying on higher volumes of conventional inputs, IWK’s organic fertiliser formulation focuses on delivering nutrient-rich applications that maximise the effectiveness of each use.
“IWK’s organic fertiliser is designed to improve nutrient absorption and soil condition, enabling farmers to achieve comparable results with lower application volumes. In a market where availability is uncertain, this efficiency becomes critical,” he said.
Beyond performance, the fertiliser had undergone extensive safety testing. Studies confirmed the absence of harmful heavy metals and pathogens, while toxicology assessments indicated no adverse effects.
Importantly, the product has also received religious clearance. The Muzakarah Committee of the National Council for Islamic Religious Affairs ruled that biosolids-based fertilisers are permissible, provided they are safe and beneficial. This position has been reinforced by several state-level fatwas, reflecting growing acceptance of such solutions.
The initiative aligns with broader national efforts to strengthen food security and reduce reliance on imported agricultural inputs. Plantation and Commodities Minister Datuk Seri Noraini Ahmad said the government is exploring additional fertiliser import channels while maintaining competitive pricing.
At the same time, local innovations are increasingly seen as a complementary strategy.
“Local solutions can play an important role to support this growing challenge. Currently IWK is able to produce up to 4-5 tons of organic fertilisers in a day, with the potential to scale further.
“IWK is also flexible in implementing fertiliser production facilities across four regions, Northern, Central, Eastern and Southern Peninsula Malaysia, to reduce logistic costs and make it even cheaper for parties who are keen.
“The initiative for IWK’s organic fertilisers is clear. It supports soil conservation by reducing reliance on chemical fertilisers and lowering long-term soil treatment costs. It also promotes environmental sustainability through the recycling of biosolids and reduced landfill disposal, while advancing a circular economy by creating value from sewage waste.
“One area that requires further attention is public acceptance of these recycled products,” Narendran added.
While not yet positioned to meet large-scale plantation demand, IWK’s organic fertiliser offers a practical and timely alternative for smallholders facing immediate cost pressures and supply uncertainty.
As global fertiliser markets remain volatile, solutions that combine cost efficiency, sustainability and local production capacity may play an increasingly important role in safeguarding Malaysia’s agricultural sector and long-term food security.