What S With The Sky High Santan Prices

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 Prices of coconut milk surged last year to RM13.05/kg and then RM20/kg in February, from an average of RM10.20-RM11/kg previously.
The price of santan – which is produced from old coconuts – reportedly reached a high of RM20/kg in February from the previous average of RM10.20-RM11/kg. (Envato Elements pic)KUALA LUMPUR: Those who are keeping a keen eye on their kitchen budget might have noticed that prices of coconut milk are now through the roof! This is a dilemma for those who are trying to keep a tight rein on their spending, while also wanting to serve up classic dishes that satisfy taste buds
According to the statistics department (DOSM), the price of santan has risen by 2.2% every year from 2019 to 2023, while remaining stable at between RM10.20 and RM11 per kg.
However, the price rose sharply last year to RM13.05 per kg – a whopping 17.7% increase! In February this year, it was reportedly at RM20 per kg.
It seems like most of the price surge took place from October 2024 onwards. So, what happened?
Weather conditions
There has been a shortage of coconuts in Malaysia since last July, with the Federal Agricultural Marketing Authority (Fama) reporting an up-to-50% drop in coconut production in several major markets in the country.
The reason for this? Unpredictable weather conditions, including less rainfall.
Coconuts usually grow well in Malaysia as our country has tropical weather, with year-round sunshine and consistent rain. But if it gets too hot and arid, young coconuts drop more quickly from the tree instead of reaching the stage of old coconut, from which we get santan.
Many coconut farmers expected heavy rainfall last October, but it fell short. More young coconuts dropped as a result – and Malaysians bought more of them because of the hot weather.
Hot, dry weather caused coconuts to drop sooner, which were then consumed by Malaysians trying to beat the heat. (Envato Elements pic)Coconut imports
It’s not just local conditions that are affecting the coconut market: Malaysia doesn’t actually produce enough for its own consumption. According to DOSM, Malaysia’s self-sufficiency ratio for coconuts was 70% in 2023, with 30% of imports coming from Indonesia.
But Indonesia, too, experienced the same problem as Malaysia – hot weather conditions and less rainfall. Indonesian coconuts used to cost about RM1.10 each, but this rose to RM1.80 in October – and has since doubled to RM2.20 as of last month.
Then we have to consider that there has been a boom in international demand for Indonesian coconuts, especially from China. This has lead to steeper prices for Indonesian coconuts in the world market.
Meanwhile, the Philippines – the world’s largest coconut producer – recently said it expects a 20% decline in output this year owing to extreme weather conditions.
Malaysian efforts
In recent years, Malaysia has been trying to increase its own production of coconuts. Local coconut production rose by 11.9% from 557,354 tonnes in 2021 to 623,663 tonnes in 2023.
However, total consumption also rose by 10.3%, from 811,809 tonnes in 2021 to 895,396 tonnes in 2023. While it seems like local coconut farmers are gradually catching up to meet local demand, there is still some ways to go before Malaysia is completely self-sufficient.
According to agricultural minister Mohamad Sabu, the government spent about RM15 million between 2021 and 2024 to plant and replant new coconut trees across 1,891ha of land, and rehabilitate some 285ha of coconut farms.
Last year, RM3 million was also allocated to produce 524,606 coconut saplings. However, since coconuts typically take about five years to start producing fruits, these efforts will only pay off several years from now.
To keep prices of santan at a reasonable level during festive periods, the government has added it to the Festive Season Maximum Price Control Scheme.Short-term solutions
More recently, the government announced that some 734 tonnes of mature, dehusked coconuts – valued at RM2.01 million – were imported from Indonesia, as well as from Sabah, as of March 4 to meet demand during the Aidilfitri period.
Mohamad also said the agriculture and food security ministry was implementing the Coconut Industry Development Programme 2021-2025 under the 12th Malaysia Plan to provide incentives for farmers to boost local coconut production.
Furthermore, the government has added coconut milk to the Festive Season Maximum Price Control Scheme, with limits imposed as follows:
Peninsular Malaysia: RM17.50 per kgLabuan: RM15 per kgSabah: RM12 per kgSarawak: RM9 per kgIn the meantime…
While they’re not the same as Malaysians’ beloved santan, there are alternatives you can try, such as evaporated milk, cooking cream, yoghurt, and dairy and non-dairy milk.
Sadly, not all dishes will taste the same without the real stuff. But, perhaps, see this as an opportunity to improvise and get creative with new recipes that excite your family and friends.
Also keep this thought mind: the less coconut milk we consume, the better it is for our cholesterol!
This article was written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.
Read more articles from MyPF here. - FMT

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