KUALA LUMPUR, Feb. 2 -- The humble coconut is a staple in Malaysian lives, from its refreshing water and creamy milk, to its role as prayer offerings at Hindu temples.

However, Malaysia is now grappling with a coconut supply crunch just as the country is heading into a bumper season of festivals including Chinese New Year, Thaipusam, and Ramadan that will all take place within weeks of one another.

In December, the Federal Agricultural Marketing Authority (Fama) noted a drop of up to 50 per cent in local coconut supply in several major markets, including Klang Valley, due to unfavourable weather.

Fama, through its subsidiary Famaco, stepped up imports of old coconuts from Indonesia to 320 metric tons in December - compared to 180 metri...