25/02/2009 (Bernama), Kuala Lumpur  Malaysia's palm oil production is expected to be unchanged or lower compared with last year's due to the implementation of the replanting scheme.

Plantation Industries and Commodities Minister, Datuk Peter Chin Fah Kui, said with the full implementation of the scheme, the country's palm oil production was expected to be reduced by 700,000 tonnes.

"We have implemented the scheme. So far we have approved 65,000 hectares of old palm oil land to be replanted," he told reporters after meeting Indonesia's Agriculture Minister, Dr Ir Anton Apriyantono, here today.

The Indonesian Minister is in the city to attend the Developing-Eight (D-8) ministers' meeting.

Chin said the crude palm oil (CPO) prices had stabilised between RM1,800 and RM1,900 per tonne at the moment.

"The implementation of the joint bilateral cooperation between Malaysia and Indonesia on reducing palm oil production will help minimise the price volatility," he said.

He said the palm oil export revenue was expected to decline by 20 percent this year due to lower CPO prices.

Chin said last year, the revenue rose to RM64 billion due to higher CPO prices in the first half of the year.

"Following the fall in CPO prices in the second half of 2008, we have not been able to achieve the previous year's record," he said.

The ministers also expressed concern on the non-tariff barriers for palm oil being imposed by major importing countries, such as the European Union and the US.