MARKET DEVELOPMENT
Malaysia To Encourage Replanting To Reduce CPO Stock, Boost Price
Malaysia To Encourage Replanting To Reduce CPO Stock, Boost Price
08/09/2015 (Bernama) - Malaysia will encourage the replanting of oil palm trees in an effort to reduce crude palm oil (CPO) stock and boost the commodity's price, which has hit a low of RM1,836.50 per tonne recently.
Palm oil is among the commodities that had been affected by the global economic uncertainties with the prices spiralling downwards as compared with in 2014 where they were trading between RM1,944 and RM2,921 per tonne.
Higher production, coupled with lower demand, had pushed the stock in July to 2.27 million tonnes.
"The current decline in palm oil prices has impacted the economy of palm oil exporting countries. Like Malaysia, Indonesia is also equally concerned about this downward price trend," said Plantation Industries and Commodities Minister, Datuk Amar Douglas Uggah Embas, here today.
In an effort to tackle the issue, the minister said, the ministry was working out strategies to manage plam oil stock.
He said this included providing incentives for replanting of old oil palm trees to manage Malaysian palm oil stock, which would commence from this October.
"Malaysia, which is the world's second largest palm oil producer after Indonesia, will also work with the latter on price stabilisation strategy," he said at the 2015 Palm Oil Industry Leadership Award dinner today.
According to the minister, these were among the things that were discussed at the ministerial-level bilateral meeting on Aug 27, 2015.
"Both countries agreed to enhance cooperation and collaboration in the palm oil industry. Among the focus of discussion were price stabilisation strategy and the implementation of the Biodiesel Programme whereby Indonesia is currently implementing the B15 and Malaysia is moving from B7 to B10," he said.
At the meeting, it was also agreed that a joint ministerial-level committee be formed to work out coordinated strategies and monitor their implementation, he said, adding that the committee has been directed to meet within a month to discuss and finalise them.
Uggah also called on the industry to consistently address the onslaught on palm oil with regard to malicious allegations on its practices, nutritional values and health effects.
He said the ministry, together with Malaysian Palm Oil Council, had undertaken various measures to address these issues over the years.
"In addition to rebuttals and media campaigns, MPOC is now embarking on branding as a platform to strengthen the image of Malaysian palm oil," he said.
The government has also set up the Malaysian Palm Oil Certification Council, which is aimed at promoting the implementation of Malaysian Sustainable Palm Oil, he said.
In 2014, Malaysia produced 19.66 million tonnes of CPO and exported 25.1 million tonnes of palm oil and palm oil products. Export earnings generated from palm oil and palm oil products last year was valued at RM66.1 billion.
Currently, the industry provides direct jobs to over 500,000 Malaysians, including 370,000 smallholders.
Palm oil is among the commodities that had been affected by the global economic uncertainties with the prices spiralling downwards as compared with in 2014 where they were trading between RM1,944 and RM2,921 per tonne.
Higher production, coupled with lower demand, had pushed the stock in July to 2.27 million tonnes.
"The current decline in palm oil prices has impacted the economy of palm oil exporting countries. Like Malaysia, Indonesia is also equally concerned about this downward price trend," said Plantation Industries and Commodities Minister, Datuk Amar Douglas Uggah Embas, here today.
In an effort to tackle the issue, the minister said, the ministry was working out strategies to manage plam oil stock.
He said this included providing incentives for replanting of old oil palm trees to manage Malaysian palm oil stock, which would commence from this October.
"Malaysia, which is the world's second largest palm oil producer after Indonesia, will also work with the latter on price stabilisation strategy," he said at the 2015 Palm Oil Industry Leadership Award dinner today.
According to the minister, these were among the things that were discussed at the ministerial-level bilateral meeting on Aug 27, 2015.
"Both countries agreed to enhance cooperation and collaboration in the palm oil industry. Among the focus of discussion were price stabilisation strategy and the implementation of the Biodiesel Programme whereby Indonesia is currently implementing the B15 and Malaysia is moving from B7 to B10," he said.
At the meeting, it was also agreed that a joint ministerial-level committee be formed to work out coordinated strategies and monitor their implementation, he said, adding that the committee has been directed to meet within a month to discuss and finalise them.
Uggah also called on the industry to consistently address the onslaught on palm oil with regard to malicious allegations on its practices, nutritional values and health effects.
He said the ministry, together with Malaysian Palm Oil Council, had undertaken various measures to address these issues over the years.
"In addition to rebuttals and media campaigns, MPOC is now embarking on branding as a platform to strengthen the image of Malaysian palm oil," he said.
The government has also set up the Malaysian Palm Oil Certification Council, which is aimed at promoting the implementation of Malaysian Sustainable Palm Oil, he said.
In 2014, Malaysia produced 19.66 million tonnes of CPO and exported 25.1 million tonnes of palm oil and palm oil products. Export earnings generated from palm oil and palm oil products last year was valued at RM66.1 billion.
Currently, the industry provides direct jobs to over 500,000 Malaysians, including 370,000 smallholders.