Improper Practices Cost Country RM325 Mln Loss
13/01/2009 (Bernama), Bangi - Malaysia suffered a loss of RM325 million last year due to improper practices during the transportation of palm oil, said Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui.
He said 88 cases were identified last year.
"Continuous monitoring should be implemented on the safety control aspect in the transportation of palm oil to ensure continuity in the export market," he told a media briefing after launching a seminar on "The Safety In Transportation of Palm Oil Products" here on Tuesday.
He said to reduce the improper practices, the Malaysian Palm Oil Board (MPOB) was cooperating with agencies like the Police, Customs Department, Ministry of Domestic Trade and Consumer Affairs and Maritime Enforcement Agency.
Meanwhile, MPOB chairman, Datuk Sabri Ahmad, said one of the improper practices involved contaminating the quality and this would hurt the image of the country as the exporter of quality palm oil in the world.
"MPOB is studying the process to set up a special fund to encourage more people to come forward to give information on the improper practices," he said.
On the Oil Palm Intensive Replanting Scheme (SITS), which was launched on Dec 1 last year, Chin said 218 applications to replant 28,835 hectares were received within one month and approved by MPOB.
He said 10 applications from the plantation companies and smallholders would received the scheme's payment.
"Applications for SITS will close in June this year and the replanting should be carried our before March 2010," he said.
Chin said replanting would involve 200,000ha and this was expected to reduce palm oil output by 700,000 tonnes.
He said the government has also increased the export quota for crude palm oil from 2.5 million tonnes to 3.0 million tonnes a year to stimulate export.
"The measures are expected to reduce the country's palm oil stock of 1.7 million tonnes and the price is expected to rise to RM2,000 a tonne," he said.
Chin said the fall in palm oil price was due to the global financial crisis.