PENANG, Jan 16 (Bernama) -- Malaysia will explore new markets in Europe toreduce its palm oil stock surplus totalling 1.3 million tonnes.
Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kuisaid among the potential markets were Poland, Czech Republic and Romania.
Presently, major export markets for Malaysia's palm oil were China, India,Pakistan, European Union and West Asia, he told a news conference afterpresenting prizes to winners of the 2nd Penang International 12-hourWalkathon, here Sunday.
In addition, the government was also actively considering plan to turn theexcess palm oil into biodiesel for use as industry fuel in the country, hesaid.
"Biodiesel can be used in vehicles, industry and power generation.However, the Cabinet has yet to decide on it," he said.
Chin said palm oil dumping in the market had caused the price of thecommodity to plunge from RM2,000 per tonne last May to RM1,300 per tonnenow.
He said local palm oil producers would have to face the stock excess anddwindling price for the next one or two months while the government soughtcooperation with Indonesia to overcome the problems.
Malaysia and Indonesia are among major producers of palm oil in theregion.
Chin said Malaysia's palm oil stock had been in excess since December lastyear following higher crop production in plantations nationwide.
When asked whether Malaysia's plantation companies in Indonesia wereadversely affected by the Dec 26 tsunami, he said most of them were inPalembang, Riau and Kalimantan.
There were no reports of them being badly affected, he said.