KUALA LUMPUR, Nov 8 (Bernama) -- Although the current escalating price ofcrude palm oil (CPO) augurs well for the planters, plantation sector andthe country economically, it has placed the local cooking oil suppliers ina dilemma to cater the local consumers' need.
The CPO prices which has been capped at RM1,450 per tonne for years hadbreached the RM1,900 per tonne level in the last one month.
This has caused the local cooking oil manufacturers having to sell withinthe ceiling price and to incur losses, the Malayan Edible OilManufacturers' Association (MEOMA) said in a statement Saturday.
MEOMA said that in 1997 when the CPO price rose and the local cooking oilprices went up accordingly, the government implemented a pricestabilisation mechanism by capping the CPO price at RM1,450 to ensure fairprice and not to burden consumers.
It said that tables of various consumer packing were also formulated and afive kilogramme bottle of palm oil was to be retailed at a maximum RM13.35to local consumers.
Compared to 1999, when the CPO price dipped below RM1,450 per tonne, localcooking oil prices also declined below the ceiling price implementedearlier.
MEOMA said that the government then disbanded the price stabilisationmechanism but the ceiling CPO prices remained in force until now.
Currently, approximately five percent of the national production of CPO isconsumed locally.
MEOMA said that its members may not be able to cope much longer in view ofthe hefty losses incurred and this may lead to a shortage of cooking oilin the local market.