FAMA acts to stabilise red chilli prices in Penang after farm prices drop due to oversupply, protecting farmers’ income and supply.
GEORGE TOWN: The Federal Agricultural Marketing Authority (FAMA) has taken proactive action to stabilise the price of red chillies following the significant decline in farm prices in Penang since the beginning of this year, to protect farmers’ income and ensure stable supply in the market.
In a statement today, FAMA said the price drop was due to excess supply with increased harvests at the local level following dry weather that encouraged chilli production, thus putting pressure on prices at the farm level and affecting the income of smallholders.
“In line with the measure to stabilise the market, Penang State FAMA has implemented several key intervention measures including increasing direct purchases from farms for selected commodities such as red chillies from 1 tonne to 2 tonnes per day.
“The implementation of the Marketing Contract Programme (RPKP) involves farmers in key areas such as TKPM Ara Kuda, Perda Veggie Park and Kepala Batas to coordinate supply and reduce the influence of middlemen,” the statement said.
Through the intervention programme, FAMA has indirectly helped to stabilise prices and support the income of farmers who have been affected by the fall in market prices.
FAMA has also expanded its marketing network through the Farmers’ Market, Jualan Agro MADANI (JAM), Agrobazaar Kedai Rakyat as well as weekly special sales which will begin at KOMTAR on May 8.
As of April 28 2026, a total of 99.675 metric tonnes of produce including red chillies have been purchased through FAMA’s intervention initiative to balance market supply and demand.
FAMA director- general, Abdul Rashid Bahri said the intervention follows the directive of the Minister of Agriculture and Food Security to assist farmers affected by the price drop, while also ensuring that domestic supply remains stable.
He said FAMA will continue to strengthen its marketing network, expand direct purchases from farms, and provide a sales platform that provides the best value to all parties in the agro-food supply chain.
In addition, FAMA together with the Penang State Agriculture Department will hold an engagement session with the chairman of the State Rural Development, Agrotechnology & Food Security and Entrepreneurship Committee, Datuk Rashidi Zinol on May 5 to discuss farm issues and continued support for local entrepreneurs.
“In addressing commodity price volatility, FAMA will extend this intervention effort to other states and commit to continuing to play a strategic role as a market balancer through the implementation of targeted, high-impact and responsive interventions to the current situation.
“This approach will not only help farmers, but also ensure supply stability and fairer prices for consumers,” according to the statement.
