21/08/2008 (The Star Online) - THE PROMOTION of the biofuel industry will not affect food supply from palm oil-based products, said Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui.

He said the government policy was to give priority to the use of palm oil as raw materials for food production although there was intention to promote the production of biofuel.

“Malaysia and Indonesia, two of the largest palm oil producers, have agreed to limit the palm oil production to six million tonnes for the biofuel industry.

“So, there is no issue of dwindling food production due to the increased promotion of biofuels,” he told Jeff Ooi (DAP-Jelutong).

Ooi had asked whether the food supply problems would increase with the usage of palm oil for the biofuel production industry.

Chin said there were now 10 biofuel factories, with a combined capacity to produce 942,000 tonnes annually from 960,750 tonnes of palm oil.

“The local biofuel production industry had used 128,235 tonnes of palm oil for the production of biodiesel last year,” he added.

Chin said the price of palm oil-based biofuel would be lower at RM2.92 per litre, based on a production price of RM2,500 per tonne of palm oil, compared to the present diesel price of RM2.94 per litre.