FAMA Intervenes as Watermelon Production Peaks in Malaysia

The Lembaga Pemasaran Pertanian Persekutuan (FAMA) has stepped in to stabilize the domestic watermelon market following a sharp increase in supply that resulted in declining farm-gate prices, particularly in Marang, Terengganu.

As the production season reached its peak, a substantial volume of seedless red watermelons entered the market within a short timeframe. Harvests from major growing areas across several states were released almost simultaneously, supported by favourable weather conditions that enhanced yields and accelerated fruit maturity. While the higher output improved overall supply and market availability, it also exerted downward pressure on prices at the farm level, raising concerns over potential income losses among growers.

In anticipation of the production surge, Pemasaran Segar dan Intervensi (PSI) implemented early planning measures. As early as mid-January 2026, PSI gathered planting data and production forecasts from all states to coordinate distribution strategies and ensure that watermelon supply could be efficiently channelled across Peninsular Malaysia, Sabah, and Sarawak.

Under this intervention framework, PSI targeted the purchase of 1,500 metric tons (MT) of watermelons directly from farmers, supported by an allocation of RM1,275,000 of the total volume, 500 MT are designated for export markets, 40 MT will be distributed to Sabah and Sarawak, while the remaining balance will be marketed within Peninsular Malaysia to help ease domestic oversupply pressures.

To further safeguard growers’ incomes, FAMA offers a floor price of RM0.85 per kilogram (kg) for seedless red watermelons. Farmers certified under the Skim Persijilan Amalan Pertanian Baik (MyGAP) scheme are also eligible for an additional incentive of RM0.20 per kg. The floor price mechanism was implemented to prevent severe price declines that could result in substantial losses for growers, while at the same time mitigating the adverse effects of market oversupply.

Despite the surge in production, short-term market conditions remain relatively stable. The harvesting period coincides with increased seasonal demand during Ramadan, when consumption typically rises due to Ramadan bazaars, catering services, and the hospitality sector. This seasonal demand has helped absorb part of the additional supply entering the market.

As of 3 March 2026, average watermelon prices in Peninsular Malaysia stand at RM1.19 per kg at the farm level, RM1.78 per kg at the wholesale level, and RM2.96 per kg at the retail level. Price movements in the coming weeks will depend on prevailing supply and demand conditions, as well as other external factors influencing the overall trading environment.

FAMA’s intervention reflects a proactive and structured approach to maintaining market stability while protecting farmers’ livelihoods. By combining direct purchases, market redistribution, and a structured floor pricing mechanism, the agency aims to cushion producers against volatility during peak production periods, while ensuring consumers continue to enjoy steady supply and reasonable prices.

With coordinated supply management and sustained seasonal demand, Malaysia’s watermelon market is expected to remain stable in the near term, benefiting both growers and consumers alike. Moving forward, FAMA will continue to monitor production trends and market conditions closely to ensure timely interventions that support farmer sustainability while maintaining market equilibrium nationwide.