Stronger ringgit benefits cocoa farmers, reduces agricultural input import costs - MPIC

KUALA LUMPUR: The strengthening of the ringgit can lower the cost of importing agricultural inputs, benefiting cocoa farmers in Malaysia, according to the Ministry of Plantation and Commodities (KPK).

The reduced import costs would lower production costs for smallholders while boosting their profit margins, it said.

"Changes in the ringgit's value do not directly impact smallholders' income as cocoa production is primarily used for the domestic market to meet the demand of cocoa processing factories.

"The fluctuations in farmgate cocoa prices in Malaysia are not directly influenced by changes in the exchange rate as they are mainly driven by global supply and demand for cocoa beans," the ministry said in a written response published on the Parliament's website today.

The KPK was replying to a question from Senator Datuk Lim Pay Hen on how the strengthening ringgit has positively impacted cocoa prices and the income of local farmers.

The ministry also noted that cocoa prices in Malaysia are currently on an upward momentum, with cocoa bean prices remaining favourable at around RM20-RM27 per kilogramme.

"In October 2024, the average cocoa price in Malaysia rose by 41 per cent to RM19,992 per metric tonne compared to RM14,136 per metric tonne in January 2024," it said.

-- BERNAMA

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