Can Malaysia achieve RM300 million in onion import savings?

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Malaysia Can Achieve RM300 Million in Onion Import Savings Through Local Cultivation

Malaysia has the potential to achieve approximately RM300 million in savings on onion imports if its local cultivation projects prove successful. This target is linked to the nation's ability to produce a significant portion of its onion supply domestically, thereby reducing reliance on foreign sources. Early results from cultivation efforts in various states indicate promising yields and a viable path towards this financial objective.
Rose Onion Cultivation Shows Promising Yields

The Selangor Agricultural Development Corporation (PKPS) has reported successful yields from its rose onion cultivation project, achieving around four tonnes per acre. This specific project is a key component of the broader strategy to boost local onion production. To further support this initiative, PKPS plans to distribute rose onion seeds to interested parties by late this year or early next year, encouraging wider participation in cultivation.
Significant Reliance on Onion Imports

Malaysia's current demand for onions is largely met through imports, highlighting a substantial opportunity for domestic production to create savings. In 2021, the country imported a total of 484,867 metric tonnes of onions, incurring costs of RM902.5 million. The primary sources for these imports were India, which supplied 57% of the total, followed by China at 20% and Pakistan at 11%.
Local Production Targets for Import Cost Reduction

Achieving a target of 30% local onion production is projected to directly translate into RM300 million in savings on import costs. This figure underscores the economic benefit of developing a robust domestic onion farming sector. Beyond Selangor, states like Penang and Kelantan have also demonstrated positive outcomes in their onion cultivation efforts, suggesting a broader potential across the country.
Ongoing Research and Feasibility Studies

The government is actively investigating the feasibility of large-scale onion cultivation through its research agencies. This includes exploring suitable states for onion farming beyond those already showing progress. Such efforts are crucial for understanding the long-term viability and scalability of domestic onion production to meet national demand and achieve the targeted import cost savings.

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Can Malaysia achieve RM300 million in onion import savings?

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