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News Admin
 
Date
 30/07/2001
News Provider
 Mahamad Rodzi Abdul Ghani
News Source
 NULL
Headline
 Exporters urged to take advantage of CPO prices

Monday, July 30, 2001(The Star) - PRIMARY Industries minister Datuk SeriDr Lim Keng Yaik on Saturday urged palm oil producers and exporters totake advantage of the current boost in crude palm oil (CPO) prices and toforward sell as much of their output as they can.He said palm oil exports would be greatly enhanced if producers/exporterssold forward as much as they could, and stocks would be reduced, ensuringa better price for the commodity."If they normally sell two to three months ahead, they should sell six to12 months if possible," said Lim at a press conference yesterday afterofficiating at a seminar organised by the Kuala Lumpur and SelangorChinese Chambers of Commerce & Industry on "The prospect and outlook forpalm oil in Malaysia."Lim lamented the fact that many producers who had complained aboutdepressed CPO prices were now reluctant to sell even when CPO prices hadreached about RM1,200 per tonne, from RM700-RM800 previously, as they wereholding out for closer to RM1,400-RM1,500 per tonne.The sudden rise in CPO prices over the past two weeks was also adouble-edged sword.While it meant better times for those involved in the sector, it may alsoput a spanner in the ministry's replanting efforts.Lim said he was afraid that some of the 4,300 applicants who hadregistered for the ministry's replanting plan would now "run away" in thelight of better palm oil prices.The ministry wants to reduce CPO production and has urged plantationowners to cut down older plants which are not as productive and to replantthem with higher yielding seedlings.The government has offered a special one-off incentive of RM1,000 perhectare to smallholders and plantations that carry out the replantingbefore year end.Moreover, smallholders have the option of taking up a government loan ofRM6,000 per hectare.As of July 10, the ministry had received 4,300 applications involving some150,000 hectares, and had been confident of achieving its target ofreplanting 200,000 hectares by the end of the year. This would havereduced CPO production by 600,000 tonnes.Lim said he was hopeful CPO prices would remain at current levels if thesector continued to work at reducing its stock and grow its exports."But I have to warn the industry that the rise in CPO is not confined toit. Rapeseed and soya bean oil prices have also increased as of weatherreports in those countries say it is not favourable," he said.


ECONOMICS & INDUSTRY DEVELOPMENT DIVISION
Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
Tel : 603 - 7802 2800 || Fax : 603 - 7803 3533