Archived News

AYER TAWAR (Perak), June 16 (Bernama) -- The Primary Industries Ministryhas set a minimum production quota for primary commodities to help rubber,oil palm and cocoa smallholders earn good income, Minister Datuk Seri DrLim Keng Yaik said Sunday.He said smallholders and government agencies like Risda, Felda and Felcrashould abide by the quota as it was a productive production capacity.

JOHOR BAHARU, June 14 (Bernama) -- The Pasir Gudang industrial area herewhich produces almost 600 million tonnes of palm oil a year, plans tofurther expand its palm oil based downstream activities.Chief executive of Johor Corporation (JCorp), Tan Sri Muhammad Ali Hashim,Friday said that to meet the objective, more companies would be encouragedto start palm oil based downstream activities in Pasir Gudang.

BOMBAY, June 13 (Reuters) - India's edible oil imports rose 26.4 percentto 471,570 tonnes in May from a year earlier, a leading trade body said onThursday.India, the world's largest edible oil importer, purchases palm oil mainlyfrom Malaysia and Indonesia and soyoil from Argentina and Brazil.Imports of crude palm oil (CPO) in May more than doubled to 216,249 tonnesfrom 95,128 tonnes, the Solvent Extractors' Association of India said in astatement.India imported 101,242 tonnes of crude palm olein during the month againstnil imports in the same month of the previous year.But imports of refined, bleached and deodorised (RBD) palm olein plummetedto just 9,434 tonnes in May from 103,320 tonnes a year earlier, thestatement said.The sharp fluctuation in palm oil imports was mainly due to a change inimport duties effected by the government last year, which prompted tradersto switch to crude oils from refined ones.India currently imposes a 85 percent basic import duty on refined oil, 65percent on crude palm oil and 45 percent on soybean oil.Imports of soybean oil (degummed) marginally fell to 137,745 tonnes in Mayfrom 145,093 tonnes a year earlier.During November-May, the first seven months of the oil year, imports fell19 percent to 2.15 million tonnes from 2.66 million, the statement said.CPO imports were up 27.6 percent to 1.09 million tonnes, while imports ofsoybean oil rose by 24.9 percent to 505,454 tonnes during the same period.Imports of RBD palm olein fell sharply to 118,895 tonnes in November-Mayfrom 1.05 million tonnes, but crude plam olein imports substantiallyincreased to 415,174 tonnes from just 14,520 tonnes in the same period ofthe previous year.

KUALA LUMPUR, June 13 (Bernama) -- Malaysia Derivatives Exchange Bhd(MDEX) is considering the cross trading of derivative products with otherexchanges in the region in order to provide greater liquidity anddiversity of derivatives products.Cross trading is an effective option for regional derivatives exchanges toconsider in expanding investor interest in regional derivative products,MDEX chief operating officer Dr Zaha Rina Zahari said.

KUALA LUMPUR, June 13 (Bernama) -- An increase of one percent in the oilextraction rate (OER) could bring in an annual RM17 million revenue forKumpulan Guthrie Bhd (KGB), said its group chief executive officer, TanSri Abdul Khalid Ibrahim here Thursday.He said the amount was based on their current production of 300,000 metrictonnes of Crude Palm Oil (CPO) with an average price of RM1,100 to RM1,200per metric tonne.

KUALA LUMPUR, June 13 (Bernama) -- Malaysian palm oil can effectivelycompete with other edible oil in the international market, PrimaryIndustries Minister Datuk Seri Dr Lim Keng Yaik said here Thursday.He said that this could be done by decreasing production cost, increasinglevel and undertaking innovative marketing and packaging.

ROME, June 11 (Reuters) - Canada slammed the United States on Tuesday overthe high level of subsidies in its new farm bill which it said increasedprotection for U.S. agriculture and prevented poor countries fromcompeting in global agricultural markets."The United States is building on the already high level of subsidies thatthey had and increasing production, thereby distorting prices," CanadianAgriculture Minister Lyle Vanclief told Reuters during a U.N.-backed WorldFood Summit.U.S. President George W. Bush signed a six-year law last month boostingU.S. crop and dairy subsidies by 67 percent despite protests from U.S.trade partners.The new law adds an estimated $6.4 billion a year to crop and dairyspending and marks a further retreat from free-market reforms begun in1985. The fatter subsidies will become available at harvest."They are adding to what they were doing in the past by being the onlycountry in the world to subsidise pulse crops," Vanclief said, referringto crops of peas and lentils.Canada said in a news release that the U.S. farm bill and EU subsidiesdistorted world commodity markets and hindered developing nations' abilityto compete in world markets."New support payments for some American pulse crops will especially impactdeveloping nations that are significant producers of these crops,"Vanclief said."A fair and market-oriented international trading system is vital toeliminate poverty and hunger."Vanclief told Reuters developing nations would find it harder to competein global wheat, maize, lentil and pea markets due to the increased U.S.farm bill subsidies."They (U.S.) added pulse crops, they increased it (subsidies) to corn,they left it about the same for soybeans," the minister said.U.S. Agriculture Secretary Ann Veneman, in an interview with Reuters onMonday, denied that the U.S. farm bill had increased protection of U.S.agriculture and said the United States was committed to droppingtrade-distorting subsidies."It (the farm bill) does nothing to increase protection at our border,"she said. "It does not change what the developing countries can export toour country."She added: "We want to eliminate export subsidies. We want tosubstantially increase market access by lowering tariffs. Our tariffs areabout 12 percent for food and agriculture. Around the world, such tariffsaverage about 62 percent.""We want to substantially reduce domestic supports that aretrade-distorting."However, the farm bill has come in for widespread criticism fromindustrialised and developing countries alike."We wish there was no such bill because it sets a bad example," AustralianAgriculture Minister Warren Truss told a news conference on Tuesday.The world food summit, organised by the United Nations Food andAgriculture Organisation (FAO), aims to revive enthusiasm in the war onhunger. It ends on Thursday.

KUALA LUMPUR, June 12 (Bernama) -- The country's crude palm oil (CPO)output for May 2002 rose by 6.98 percent to 924,797 tonnes from 864,467tonnes a month earlier.Out of this, Peninsular Malaysia's production accounted for 542,042tonnes, higher by 8.58 percent from April's 499,224 tonnes, the MalaysianPalm Oil Board (MPOB) said in a statement here Wednesday.

KOTA KINABALU, June 11 (Bernama) -- Local exporters and importers havebeen told to be careful and check thoroughly the details and conditionsset in the letters of credit from their overseas customers.RHB Bank Bhd's manager for marketing and business development, TradeServices Division, Mohd Radzi Md Jani said the letter of credit was apayment mode for imports and exports through a bank and that it containedthe terms of business agreed upon by both the importer and exporter.

05/06/2002 (Asia Intelligence Wire) - Since China placed bean oil onto itsproposed list to retaliate against the tariff imposed by the United Stateson China's steel imports, the country has learned to master the techniqueof protecting its own interests under the framework of the World TradeOrganization (WTO), analysts said."While showing a warning to the Bush administration, the selection of beanoil as a retaliative item can give domestic farmers and producers morebreathing room before the impact of the US imports of soybean and beanoil,"said Wang Zihui, an analyst with Beijing-based newspaper ChinaBusiness.Wang's comments came after China submitted a list of US production whichit intends to suspend promised tariff reductions in line with its WTOcommitments. Imports of waste paper, bean oil and electric compressorsfrom the US will be subject to 24 percent tariffs, after the WTO disputesettlement body gives its final jurisdiction against the US tariffs andwill be valid until 2005.The measure was declared two months after US President George W Bushslapped tariffs ranging from 8 to 30 percent on steel imports fromcountries like Japan, the European Union (EU), and China. It also came oneweek after Bush signed a farm bill guaranteeing US$190 billion subsidiesto US farmers over the next 10 years.Compared with the proposed suspension list that would cause total dutiesof US$94 million for US produce, China's reaction on the US farm bill wasquite reserved. On June 4, a joint statement from the Ministry of ForeignTrade and Economic Cooperation (MOFTEC) and the Ministry of Agricultureindicated that the US bill distorted international farm trade, and Chinawould reserve the right to take further action."China's restrictive attitude is quite understandable, because so far itis unclear how much the new farm bill will impact our farmers,"said LuFeng, an agricultural economist with Peking University.According to Lu, there are certain procedures before the bill -- which hebelieves is against the free trade principle -- would play an effectiverole in lowering US farm costs, and major grain exporters such as Canada,Australia and EU look set to suffer the most from the bill.On the issue, China could further watch the concrete reaction of thesecountries, the professor suggested.Larry M Senger, minister-counsellor for the US Embassy to China in chargeof agricultural affairs, contended the subsidy level of the 2002agricultural bill saying it is in line with WTO requirements and is stilllower than the EU's level."It could help Chinese people have easier access to high-quality USfarming products,"Senger said.On the other hand, the country's proposed punitive tariff on the US beanoil could become a powerful weapon to fight back against the risingprotectionism policy of the Bush administration, which appears to be aimedat gaining more votes from US farmers and steel workers for theRepublican.The US agriculture-heavy states that benefited the most from the farm billare traditional supporters of the Democratic. The expected loss fromsoybean growers resulting from China's proposed tariff on bean oilthreatens to weaken the effect of the measure.In fact, the list ranked by China echoes those of the EU and Japan, whichall include agricultural products.While the amount of the tariff China proposed to levy was not very high,it sent a signal that the punishment could be extended to soybean or otherproducts, said Wang of China Business.For domestic soybean growers and bean oil producers, the list has broughtgood news. In the past week, prices for soybean futures in the Zhengzhougrain future exchange has seen a continuous growth.In recent years, China's annual imports of US soybean have reached 1.5million tons, equal to the amount of domestic output. The heavy import hasseriously impacted the domestic market and has caused heavy loss tosoybean growers in China.In March, a regulation on genetically modified organisms (GMO) whichrequires a 270-day inspection period for imported GMO, has stalled therising import of US soybean, 70 percent of which are GMO. Since March, noshipment of imported soybean has docked in Chinese ports, according toChina Business.Reduced soybean imports and the proposed duties on bean oil could greatlystimulate the demand of domestic oil production, increasing the income ofgrowers, China Business quoted Tang Yanli, a senior analyst with theMinistry of Agriculture's Information Center, as saying.Tang predicted the hiking soybean price would end in late June, whensoybean imports resume.After all, domestic growers have harvested the current good market.For the long-term benefit of Chinese growers, the government would have tosignificantly increase its subsidies for domestic farmers, said Niu Li, aneconomist with the State Information Center."Although the import quota system would help reduce the US farm subsidy'simpact on domestic farmers, the bill also urges us to significantlyincrease our own subsidies,"said Niu.According to China's commitments to the WTO, by 2004, the country wouldoffer import quotas of up to 5 percent of its grain outputs, which ensuresthe demand for imported agricultural produce does not fluctuate greatly.At present, China's subsidies for farmers are 2 percent, while the countryhas promised the WTO they would not surpass 8.5 percent."Our subsidies only cost US$10 billion a year while the US would giveUS$190 billion to its farmers, which offers an excuse for us tosignificantly increase our subsidy level in the framework of the WTO,"saidLong Yongtu, vice-minister of MOFTEC, last week.

Saturday, June 8, 2002 (The Star) - AFTER hitting a three-year high ofRM1,510 per tonne on Thursday before easing back to RM1,500 yesterday,crude palm oil (CPO) prices will be closely watched next week as a furthersurge will likely prompt renewed buying interest in pure plantation stockswhich hold the potential to trigger a new rally on the KLSE.Market players said genuine buying interest in plantation stocks wouldsoon emerge as industry players were gradually becoming more confident ofa continued strengthening of the CPO price; backed by strong fundamentals,depleting stocks and production, as well as an encouraging export outlook.Late last month, despite the price of CPO breaching the RM1,300 per tonnelevel after plunging to RM673 in June last year, market players were stillreluctant to pick up attractive plantation stocks on the KLSE because theywere unconvinced that the CPO price was trending upwards.

(Correction on figures - 1,50,000 tonnes, 3,00,000 tonnes & 6,00,000tonnes should read as 150,000 tonnes, 300,000 tonnes & 600,000 tonnes)