30/7/06 (Bernama )  -  THE Cabinet Committee on the Competitiveness of the Palm Oil Industry has decided for the Government to temporarily stop issuing new manufacturing licences for biodiesel production with immediate effect.

This was due to the rising concern on the sufficient supply of crude palm oil as raw material for biodiesel production against that for other related industries, particularly for the food and oleochemicals sectors.

In a statement yeserday the Plantation Enterprises and Commodities Ministry said the issuing of licences would cease pending the completion of a comprehensive review of the palm-based downstream sectors, including biodiesel.

Applications would not be received for consideration after this date, it added.

The Government has been promoting the palm-based biofuel industry as a new source of growth for the economy.

Since the launching of the National Biofuel Policy and Envo Diesel by Prime Minister Datuk Seri Abdullah Ahmad Badawi on March 21, the Government has received many applications for the licence to manufacture biodiesel. — Bernama