FAMA Introduces RM2.70 Floor Price to Cushion Durian Farmers From Market Oversupply
SELAYANG: The Federal Agricultural Marketing Authority (FAMA) has strengthened efforts to protect durian growers from volatile market conditions by maintaining a floor price mechanism of RM2.70 per kilogram for kampung durians during periods of severe oversupply.
The initiative is designed to provide a safety net for farmers whose incomes are affected when farmgate prices decline due to seasonal surges in production.
Deputy Director-General (Food Security and Operations) Faisal Iswardi Ismail said FAMA would intervene in the market whenever prices fall below the established threshold by purchasing durians directly from growers at the guaranteed rate.
According to him, the mechanism forms part of a broader contract marketing programme aimed at ensuring farmers continue receiving reasonable returns despite fluctuations in supply and demand.
“The floor price serves as a protection mechanism for growers. When market prices drop below RM2.70 per kilogram, FAMA steps in to purchase the produce at the predetermined rate.
“This helps reduce the financial impact on farmers during periods of excessive supply,” he said during a media engagement session at FAMA headquarters.
He noted that current farmgate prices for kampung durians range between RM1 and RM4 per kilogram, depending on fruit quality, location and prevailing market demand.
The recent decline in prices has been attributed largely to a nationwide increase in production, with most states entering their harvesting season at roughly the same time.
Favourable weather conditions and the maturation of additional planting areas have also contributed to a significant rise in overall output this year.
“When harvests occur simultaneously across multiple states, supply increases sharply and places downward pressure on prices at the farm level,” he said.
While lower prices benefit consumers by making durians more affordable, Faisal stressed that prolonged price declines could negatively affect growers’ earnings if support measures are not implemented.
To address the issue, FAMA has expanded direct purchasing programmes through its nationwide network of operational centres, helping absorb excess supply and stabilise the market.
A total of 42 operational centres are currently involved in purchasing durians directly from producers.
As part of these efforts, FAMA has acquired more than 140 metric tonnes of durians directly from growers, while entrepreneurs under its guidance have collectively purchased over 1,000 metric tonnes worth more than RM3 million.
According to Faisal, the programme helps ensure a smoother distribution process and reduces pressure on farmers during peak harvest periods.
Beyond direct purchases, FAMA has also established numerous seasonal fruit sales locations and temporary collection centres across the country to improve market access for local producers.
These initiatives are intended to create additional marketing channels and ensure harvested fruit can reach consumers more efficiently.
However, Faisal clarified that no floor price mechanism currently exists for premium durian varieties such as Musang King and Black Thorn, as those products operate under different market dynamics and pricing structures.
FAMA believes that strategic market interventions remain crucial in maintaining stability within the agricultural sector, particularly during seasonal production peaks.
By combining direct purchases, expanded distribution channels and pricing support, the agency hopes to safeguard farmers’ livelihoods while ensuring consumers continue to enjoy access to locally produced durians.
“Our objective is to ensure growers receive fair returns and that their produce remains marketable even when supply levels rise significantly,” he said.
