20/5/2007  -  MIRI: Plantation Industry and Commodities Minister Datuk Peter Chin expressed his concern that the present continuous rise in the price of palm oil could aggravate the country's economic situation.

He said he would prefer to see the market value remaining stable to ensure a sustainable growth for the industry and keep a steady consumer market than the rising trend.

Speaking to reporters here Saturday, he said the recent problem faced by cooking oil refineries and packagers to supply one-kilogramme packet was one of the downsides caused by the rising palm oil prices.

He added that although cooking oil price was controlled by the Government, the producers feel the higher cost of production as they get at market price palm oil as raw material for producing cooking oil.

"It is not always a good sign that our palm oil price remains very high. It will cause this problem and can also cause inflation (rate to increase)," he added.

He said the Government would spend RM145.41 million under a price stabilisation scheme to compensate the 11 cooking oil refineries and 193 packagers nationwide who have been suffering losses the past five months.

He said the increase in price of palm oil-based cooking oil if left unchecked could lead consumers to opt for cooking oil produced from soya bean, corn or other commodities.

Chin added that the price of palm oil stood at about RM415 per tonne, the highest in the past 10 years. He added that he will be "a bit uneasy" if the price continues to shoot up.- Bernama