A legal battle is underway between Raub durian farmers and a state-backed conglomerate. The dispute involved allegations that the farmers were encroaching and converting state government land into illegal durian plantations, as well as accusations that the Royal Pahang Durian Resources (RPDR) was exploiting the small-scale farmers by demanding unreasonable yield targets in a deal to legalise them.

The conundrum now involves an enquiry by the Malaysian Anti-Corruption Commission (MACC), who are questioning the farmers over the aforementioned land encroachment.

A recent SCMP article by Tashny Sukumaran covered the story in more detail, in which our principal Khor Yu Leng was quoted.

The wrangling in Raub struck a stark contrast to the Thai durian export juggernaut, said economist Khor Yu Leng, noting that Thailand had recorded almost US$1 billion in sales to China from March to June.

“Trade is just getting its footing and it would be unwise for people to try and muscle in,” she said.

While Malaysia has pinned great hopes on its new channel of frozen durian exports, the word from some eyeing volume to China is for volume to be flattish against 2019. Last year, China approved Malaysian imports, although this appeared to be delayed; durian insiders said there were some wrangling on the Malaysia-side over who would be allowed to export under the then-Pakatan Harapan administration.

This came as surprise as Malaysia is coming up from almost zero-base; tackling the China market seemed to offer enough room for all enterprising exporters. More recently, wrangles have appeared in the Raub area, which also supplies the famed Musang king (mao shan wang/MSW) durian. The previously described legal saga has unlicensed farmers fearing lopsided terms with a joint venture durian concessionaire-cum-marketing wannabe. In the meantime, the Thai durian export juggernaut has powered ahead with almost USD1 billion in sales to China in March-June, a record sales volume with unit prices doubling in the last two years.