20/10/2008 (Bernama), Kuching - Malaysia will act to address the slide in global crude palm oil (CPO) prices to ensure the sustainability of the country's oil palm industry.

Plantation Industries and Commodities Minister, Datuk Peter Chin Fah Kui, said Prime Minister, Datuk Seri Abdullah Ahmad Badawi, would chair a meeting of the Cabinet Committee on Competitiveness of Palm Oil tommorrow.

"One of the issues to be discussed is the slide in the CPO prices and the steps to be taken to address the problem," he told reporters after opening the Modipalm Continous Sterilisation forum here today.

Chin said one of the possibilities being considered was to waive the excess profit tax imposed on plantation companies.

"This is being considered by the goverment especially now that the CPO price is around RM,1650 which is below the threshold price of RM2,000 per tonne," he said.

He said Malaysia would work closely with Indonesia on marketing, promoting and supply programmes for palm oil.

"A working visit to Indonesia is in the pipeline to iron out the details and mechanisms of implementation," he said

On the high fertiliser prices, Chin said Deputy Prime Minister/Finance Minister, Datuk Seri Najib Tun Razak, will attend a meeting this week with the manufacturers and producers of fertilisers.

"The meeting will find out the reasons for the high prices which had affected the smallholders where some are forced to do away with fertilisers to cut down their operation costs," he said.

Chin said with the global oil prices on downtrend, it was puzzling to see the fertiliser prices not following suit.