KUALA LUMPUR, Feb 19 (Bernama) -- Minister of Primary Industries, DatukSeri Dr Lim Keng Yaik urged palm oil producers to form a strong consortiumto "control" crude palm oil (CPO) prices in overseas market.

"History may be repeated as in rubber industry where foreign multinational companies are now controlling the prices even though we are oneof the major suppliers of that commodity," he said.

He was met by the reporters after officiating the Malaysia Palm OilPromotion Council (MPOPC) and Malaysia Palm Oil Board (MPOB) MarketingDialogue 2004 here Thursday.

Dr Lim said that with the establishment of the strong consortium, thelocal industry as a main supplier would somewhat determine their ownprices instead of the buying countries determining the prices.

"We must at all times demand for higher prices to the extent that we cansay to the buyers take it or leave it," Dr Lim added.

On the CPO prices, the minister is confident that it will surpass theRM2,000 per tonne level soon backed by favourable export growth, tightworld oils and fats supply and reduction in global stock.

Last year, Malaysia produced 13.35 million tonnes of CPO which representedabout 50 percent of the world palm oil production. Malaysia's exports forlast year amounted to 12.25 million tonnes, a 12.5 percent increase over2002.

February South was at RM1,950 per tonne Wednesday.

-- BERNAMA