08/08/2009 (New Sabah Times) - The Malaysian Palm Oil Board (MPOB) will take steps to reduce the price gap of palm oil between Peninsular Malaysia, and Sabah and Sarawak.

The price difference now between peninsula and Sabah and Sarawak are about RM40-RM50 depending on the market, said MPOB chairman Dato’ Sabri Ahmad.

He told this to reporters at the ground breaking ceremony for the construction of Sawit Information Centre Complex at Kota Kinabalu Industrial Park (KKIP) yesterday.

The ceremony was performed by Plantation Industries and Commodities Minister Tan Sri Bernard Dompok.

“We are trying to close the gap so that the price in Sabah and Sarawak will be the same as peninsula, if we can do that the income of the smallholders will increase,” said Sabri.

“A decade ago there is a justification for the price between Sabah and Sarawak and it is considered a discount to peninsula because the crude palm oil (CPO) from Sabah and Sarawak are sent to peninsula for refinery, but today they have their own refineries,” he said.

One of the measures taken by the ministry was to allow duty free export of CPO from Sabah and Sarawak, where they have a choice to sell their CPO to refinery or export, he said.

“We have discussions with the various stakeholders such as the millers, refineries and small holders because we want to have a concept of working together in collaboration for a win-win formula,” he said adding that when the millers made more money, the smallholders would get better income.

He said MPOB has also embarked on studies to develop tissue culture and some of the research and development would be transferred to Sabah if it is suitable because ‘the soil in peninsula and Sabah may be different.’

He said MPOB had also set up the Sawit Industry Training Centre in the MPOB Lahad Datu research station complex to provide trained and efficient personnel in the industry. The centre can accommodate 300 participants at any one time.

Meanwhile, the Sawit Information Centre Complex costing some RM15 million is expected to be ready by September 2010.

The project to be built on a 23.2 acres (9.4 hectares) site will be built in phases.