MARKET DEVELOPMENT
France Slammed For Move Against Palm Oil Products
France Slammed For Move Against Palm Oil Products
10/03/2016 (Borneo Post) - Industry specialist Dorab Mistry yesterday condemned France for its plan to impose progressive tax on palm-based products that enter the country, up to 900 euros (about RM4,125) per tonne.
Speaking at the Palm & Lauric Oils Conference and Exhibition 2016 yesterday, Mistry said he saw the move as an ‘assault’ against developing countries which used palm oil for its bountiful availability and attractive price.
“I want to add my condemnation of the irrationally selfish action by the French government in seeking to put punitive taxes on palm oil derivatives,” he said.
“If they do not relent, all developing countries – not just Malaysia and Indonesia – must join hands and consider this an assault on our economic well being.”
On January 21, the French parliament approved a Bill that would raise the import tax of palm oil from 100 euros per tonne to 300 euros from 2017, 500 euros per tonne from 2018, 700 euros per tonne from 2019 and eventually up to 900 euros per tonne.
“France does not need to block its copybook by this demented action against palm oil,” he added.
During the conference, Mistry also put forth his predictions that Malaysian palm oil futures will climb nearly 20 per cent to around RM3,000 a tonne as dry conditions brought by the El Nino weather pattern curb output in Indonesia and Malaysia.
Palm oil prices will keep climbing until they hit a level that stifles demand from price-sensitive importers such as India, Mistry said during the conference.
“I believe we must now cast aside all ideas of CPO futures at RM2,600 or RM2,700,” he said. “We have to take prices to levels where demand does not expand, and in price-sensitive markets like India, demand begins to shrink.
“And that means BMD futures trading will begin with a 3, not 2.”
The specialist went on to say global palm oil production was forecast to decline by almost three million tonnes in the year up to September 16, caused by dry weather in late 2015 and in recent months across Indonesia and Malaysia.
The two nations account for 90 per cent of the world’s palm oil output.
Meanwhile, Mistry predicted output from Malaysia might see a drastic drop of 1.5 million tonnes to 18.4 million tonnes in 2015-2016, ahead of statistics from the Malaysian Palm Oil Board on March 10 (today).
He said output would total 31 million tonnes in Indonesia.
“Data on Indonesia is much more difficult to obtain, examine and extrapolate. The severest effect of the El Nino has also been limited to southern Sumatra and to parts of Kalimantan,” he said.
“At this stage, I am only reducing my estimate of Indonesian production by 1.2 million tonnes.”
Speaking at the Palm & Lauric Oils Conference and Exhibition 2016 yesterday, Mistry said he saw the move as an ‘assault’ against developing countries which used palm oil for its bountiful availability and attractive price.
“I want to add my condemnation of the irrationally selfish action by the French government in seeking to put punitive taxes on palm oil derivatives,” he said.
“If they do not relent, all developing countries – not just Malaysia and Indonesia – must join hands and consider this an assault on our economic well being.”
On January 21, the French parliament approved a Bill that would raise the import tax of palm oil from 100 euros per tonne to 300 euros from 2017, 500 euros per tonne from 2018, 700 euros per tonne from 2019 and eventually up to 900 euros per tonne.
“France does not need to block its copybook by this demented action against palm oil,” he added.
During the conference, Mistry also put forth his predictions that Malaysian palm oil futures will climb nearly 20 per cent to around RM3,000 a tonne as dry conditions brought by the El Nino weather pattern curb output in Indonesia and Malaysia.
Palm oil prices will keep climbing until they hit a level that stifles demand from price-sensitive importers such as India, Mistry said during the conference.
“I believe we must now cast aside all ideas of CPO futures at RM2,600 or RM2,700,” he said. “We have to take prices to levels where demand does not expand, and in price-sensitive markets like India, demand begins to shrink.
“And that means BMD futures trading will begin with a 3, not 2.”
The specialist went on to say global palm oil production was forecast to decline by almost three million tonnes in the year up to September 16, caused by dry weather in late 2015 and in recent months across Indonesia and Malaysia.
The two nations account for 90 per cent of the world’s palm oil output.
Meanwhile, Mistry predicted output from Malaysia might see a drastic drop of 1.5 million tonnes to 18.4 million tonnes in 2015-2016, ahead of statistics from the Malaysian Palm Oil Board on March 10 (today).
He said output would total 31 million tonnes in Indonesia.
“Data on Indonesia is much more difficult to obtain, examine and extrapolate. The severest effect of the El Nino has also been limited to southern Sumatra and to parts of Kalimantan,” he said.
“At this stage, I am only reducing my estimate of Indonesian production by 1.2 million tonnes.”