Palm Oil Fertiliser Orders Paused As Middle East Conflict Drives Prices Up
18/03/2026 (Business Recorder) - Malaysian fertiliser makers are halting new orders as supply-chain disruptions and raw material shortages linked to the Middle East conflict push up production costs for palm oil.
Reuters reported that the near-closure of the Strait of Hormuz amid the Israeli-US war on Iran has restricted fertiliser supply from the region, while also affecting oil and gas needed for local production. Fertilisers account for more than half of total production costs for Malaysian palm oil planters.
Union Harvest (M) Sdn Bhd and FGV Fertiliser Sdn Bhd, a subsidiary of FGV Holdings Bhd, have both temporarily suspended new orders and sales of single-nutrient fertilisers, including urea, ammonium sulphate and muriate of potash, until revised pricing is confirmed.
The suspension of orders underscores the vulnerability of Southeast Asia’s palm oil sector to global geopolitical tensions and supply shocks.