Johari: Palm oil dealers to issue receipts or risk losing licences
28/12/2024 (New Straits Times), Kuala Lumpur - Beginning January, all palm oil dealers will be required to issue purchase receipts for commodities bought from smallholders, with non-compliance resulting in non-renewal of their licences.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani stressed the need for accurate weighing equipment to prevent fraud and safeguard smallholders' interests.
"Starting 2025, I have directed the Malaysian Palm Oil Board (MPOB) to ensure strict adherence to these regulations. Dealers must use accurate weighing scales to eliminate complaints from smallholders about faulty measurements," he said.
He highlighted frequent grievances from smallholders alleging dishonest practices by dealers, including inaccurate weighing.
"Whenever dealers purchase palm oil fruit from smallholders, they must provide a receipt detailing the tonnage, weight, and oil extraction rate (OER) for transparency," he said after attending the Malay Businessmen and Industrialist Association Malaysia (Perdasama) Annual General Meeting today.
Johari stressed that adherence to these procedures was mandatory.
"Failure to comply will result in non-renewal of licenses starting next year. MPOB officers will also conduct surprise inspections to ensure compliance."
On Malaysia's palm oil commodity performance, Johari urged a focus on sustainability while improving yield.
"Malaysia, as the second-largest exporter of palm oil, must strive to remain competitive by increasing production.
"Commodities — whether palm oil, rubber, soybeans, sunflower, wheat, or cocoa — are governed by supply and demand dynamics. When supply exceeds demand, prices fall. However, when demand outpaces supply, prices rise.
"To stay competitive, we must boost production. Higher competitiveness will naturally attract demand," he added.