FAMA assures stable food prices despite diesel hike

LocalBusiness & Finance
20 Apr 2026 • 5:11 PM MYT
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FAMA confirms stable food prices and supply despite diesel price increases, with government subsidies and direct sales programmes helping to control costs.

KUALA LUMPUR: The Federal Agricultural Marketing Authority (FAMA) has confirmed that food and agricultural produce prices have remained stable despite the recent increase in diesel prices.

Director-General Abdul Rashid Bahri stated that the current situation shows no significant disruption to the food supply chain, following government measures to provide sufficient diesel subsidies to farmers and distributors.

“In fact, at present, the diesel price increase has not had a significant impact, with prices remaining stable and supply being sufficient,” he told reporters at the Johor edition of the MADANI Agro Sale programme.

He added that FAMA, together with the Domestic Trade and Cost of Living Ministry (KPDN), continuously monitors the stability of both supply and prices across the country.

Abdul Rashid also advised the public against panic buying, assuring that food supplies are adequate while dismissing viral claims regarding rice shortages in Sabah.

On broader cost pressures, he highlighted that programmes like the MADANI Agro Sale help maintain prices 10% to 30% lower than the market by enabling direct sales from producers to consumers.

He explained that the contract farming programme also plays a crucial role in stabilising agricultural prices while ensuring farmers receive fair returns for their produce.

“Through this programme, we set a floor price, and if market prices fall, FAMA will purchase at a higher price to ensure farmers remain viable and supply is not affected,” Abdul Rashid said.

He confirmed that FAMA has received new allocations from the Finance Ministry and the Agriculture and Food Security Ministry to continue implementing the MADANI Agro Sale programme from April to December this year.

The authority is targeting 5,000 MADANI Agro Sale programmes nationwide, with FAMA itself organising 3,500 of these events.

The Johor edition, themed “Kerja Kahwin Johor”, involved 30 entrepreneurs offering products like chicken, meat, seafood, vegetables, and fruits.

This particular event is expected to attract 2,000 visitors, generate RM100,000 in sales, and deliver savings of about RM30,000 to consumers.

Participating entrepreneurs at the Johor sale are projected to earn an additional RM3,000 to RM5,000 each from the event.

Since its introduction in January last year, the MADANI Agro Sale programme has recorded cumulative sales of approximately RM2.059 million as of March 2026.