MARKET DEVELOPMENT
CPO Production To Hit 20 Million Tonnes In 2015: Uggah
CPO Production To Hit 20 Million Tonnes In 2015: Uggah
01/01/2015 (Bernama) - Plantation Industries and Commodities Minister, Datuk Amar Douglas Uggah Embas, expects crude palm oil (CPO) production to reach 20 million tonnes next year from the estimated 19.5 million tonnes this year.
He said production in 2014 was hampered by the floods whereby a total of 7,500 smallholders covering 24,000 hectares (ha) and 230 oil palm estates spanning 160,000ha were affected.
"The Malaysian Palm Oil Board (MPOB) is looking at minimising the impact of the floods on smallholders, however, we still cannot reveal our plans as we are still working it out with the government," he told a press conference on the Rubber Production Incentive (IPG) here Wednesday.
For December 2014, CPO production is expected to reduce by between 15 per cent and 20 per cent to 1.4 million tonnes from 1.75 million tonnes recorded in November.
Stockpile is expected to ease to two million tonnes from 2.7 million tonnes last month.
Uggah said the country's stockpile would likely continue to decline going forward as the government implements the Biodiesel B7 programme (blending of 7.0 per cent palm biodiesel with 93 per cent petroleum diesel) on full throttle throughout the country in January next year.
"So far, we have only started implementing the B7 programme in some parts of the country. We are also looking forward to implement the B10 programme," he said.
Meanwhile, MPOB Director-General Datuk Dr Choo Yuen May expected a slight decline in exports revenue this year to RM60 billion from RM63 billion in 2013.
On rubber, Uggah projected production to reach 700,000 tonnes next year with January production estimated to ease at around 30,000 tonnes due to heavy rainfall.
He said while it was a challenging time for natural rubber, production would likely pick up in the middle of next year.
On the IPG, to be carried out in January 2015, the mechanism is designed to assist the smallholders during the decline in rubber prices.
"The programme will be activated when the SMR20 is at or below RM4.60 per kilogramme (kg) and cuplumps at or below RM1.75 a kg," Uggah said.
Once activated, the government will pay RM0.30 per kg for cuplumps (50 per cent dry rubber content - DRC), a maximum of RM0.90 per kg for latex based on DRC and a maximum of RM0.60 per kg for unsmoked sheets rubber based on DRC.
"In order to claim, the smallholders must provide an invoice for the rubber which had been sold and possess the Rubber Transaction Authority Permit (PAT-G) cards.
"So far, we have issued 124,000 PAT-G cards. To the smallholders who have not yet applied, we advise them to do so within the next two weeks," he added.
On assisting smallholders affected by the floods, he said the government was looking into replacing their rubber tapping equipment as one of the relief measures.
He said production in 2014 was hampered by the floods whereby a total of 7,500 smallholders covering 24,000 hectares (ha) and 230 oil palm estates spanning 160,000ha were affected.
"The Malaysian Palm Oil Board (MPOB) is looking at minimising the impact of the floods on smallholders, however, we still cannot reveal our plans as we are still working it out with the government," he told a press conference on the Rubber Production Incentive (IPG) here Wednesday.
For December 2014, CPO production is expected to reduce by between 15 per cent and 20 per cent to 1.4 million tonnes from 1.75 million tonnes recorded in November.
Stockpile is expected to ease to two million tonnes from 2.7 million tonnes last month.
Uggah said the country's stockpile would likely continue to decline going forward as the government implements the Biodiesel B7 programme (blending of 7.0 per cent palm biodiesel with 93 per cent petroleum diesel) on full throttle throughout the country in January next year.
"So far, we have only started implementing the B7 programme in some parts of the country. We are also looking forward to implement the B10 programme," he said.
Meanwhile, MPOB Director-General Datuk Dr Choo Yuen May expected a slight decline in exports revenue this year to RM60 billion from RM63 billion in 2013.
On rubber, Uggah projected production to reach 700,000 tonnes next year with January production estimated to ease at around 30,000 tonnes due to heavy rainfall.
He said while it was a challenging time for natural rubber, production would likely pick up in the middle of next year.
On the IPG, to be carried out in January 2015, the mechanism is designed to assist the smallholders during the decline in rubber prices.
"The programme will be activated when the SMR20 is at or below RM4.60 per kilogramme (kg) and cuplumps at or below RM1.75 a kg," Uggah said.
Once activated, the government will pay RM0.30 per kg for cuplumps (50 per cent dry rubber content - DRC), a maximum of RM0.90 per kg for latex based on DRC and a maximum of RM0.60 per kg for unsmoked sheets rubber based on DRC.
"In order to claim, the smallholders must provide an invoice for the rubber which had been sold and possess the Rubber Transaction Authority Permit (PAT-G) cards.
"So far, we have issued 124,000 PAT-G cards. To the smallholders who have not yet applied, we advise them to do so within the next two weeks," he added.
On assisting smallholders affected by the floods, he said the government was looking into replacing their rubber tapping equipment as one of the relief measures.