No plan to control price of palm oil, says govt
30.03.2023 (Free Malaysia Today) - KUALA LUMPUR: The plantation and commodities ministry says the government does not plan to regulate the price of palm oil as a government-controlled product for now.
The ministry said this was because the price of palm oil in the market was influenced by fundamental factors and market sentiment, which changed based on demand.
“Among the basic factors that influence the price movement of crude palm oil (CPO) are the low supply of palm oil and high demand for exports.
“These contribute to the increase in the price of palm oil in the market,” the ministry said in a written reply to a question from Bobbey Suan in the Dewan Negara.
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Suan had asked about the long-term measures to regulate the price of palm oil as a government-controlled product.
The ministry also said the increase in the prices of soybean oil and Brent crude oil would contribute to the CPO price because the prices of both products moved in tandem in the market.
It said it strived to ensure that CPO prices remained stable in the future by taking strategic measures such as collaborating with Bursa Malaysia to launch CPO futures contracts specifically for East Malaysia.
It also aimed to increase the demand for palm oil and palm-based products through the strengthening of existing markets such as Pakistan, Turkey and Asean countries, as well as the exploration of new markets such as Africa, the Middle East and the Americas.
Among the other initiatives were strengthening strategic cooperation with Indonesia through the Council of Palm Oil Producing Countries to improve sustainable environmental practices, supply management, promotional activities and smallholder development.