KUALA LUMPUR, Aug 20 (Bernama) -- The government will abolish the fivepercent export duty for semi-processed palm oil products (first stage andsecond stage) effective Sept 1, said Primary Industries Minister DatukSeri Dr Lim Keng Yaik.

The government hopes this move will encourage producers to export more ofthe particular products, he told a press conference after launching theInternational Palm Oil Congress 2001 (PIPOC) here today.

Dr Lim said that there was a niche market for the semi-processed products.

"It is not a big one, but it is still a niche market, so by abolishing theduty, our export figures can be improved," he said.

Dr Lim said that currently Malaysia exported 250,000 tonnes to 300,000tonnes of semi-processed palm oil a year.

Dr Lim also expressed concerns that planters might delay their replantingprogramme given that crude palm oil (CPO) prices had been on the uptrendrecently.

He urged the planters, especially smallholders, to continue theirreplanting programme although the CPO prices had improved.

"Now that the prices have gone up, I am worry that they may not want toreplant," he said.

Dr Lim said that the planters must take the replanting programme seriouslyas majority of the old trees could not yield profoundly.

"The old trees used the old clones and as a result productivity is low,"he added.

Concerning the RM1,000 incentive per hectare for replanting, Dr Lim saidthat it would be given under the "first come first serve basis".

"If the targeted 200,000 hectares (for replanting) has been achieved, thenthose who started late may not stand a chance to get the incentives," hesaid.

He added that so far the government has received more than 4,000applicants for the scheme made up of 180,000 hectares of land.

"But they have yet to begin cutting down trees," Dr Lim said.

He said that the incentive scheme was only available for this year andthat those who commence next year would not get the incentives.

"They can register for the scheme, but they cannot get the incentives," hesaid.

Dr Lim also said that India might review its import tariff structure onoils and fats products.

"Previously, because there is a big discount between palm oil prices andsoya bean oil prices, the Indian government has increased the duty forpalm oil.

"And now that palm oil prices have firmed up, I am confident that theIndian government will lower the import duties for palm oil," he added.

Dr Lim said that there was still demand for palm oil in the Indian marketand eventually, the Indian government might need to review the tariffs.

-- BERNAMA