[Back]   [Comments]  [Print]

NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

09/04/2002

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

NULL

CATEGORY

HEADLINE

Re: China’s CPO purchases prove disappointing
NOTE: CPO mentioned in first para. is Palm Oil (PO) and not crude palmOil (CPO). 300,000 tonnes is refer to allocation allowed so far by Chinato exporters of palm oil. Malaysian exports to China from Jan. to Feb. isonly 109,984 tonnes.

09 April 2002 (Business Times) - CHINA has bought only about 300,000tonnes of crude palm oil (CPO) in the first three months of the year,which is well below expectations.Malaysia is disappointed with the small amount of imports so far,especially when China has pledged to buy up to 2.4 million tonnes thisyear, said Primary Industries Minister Datuk Seri Dr Lim Keng Yaik.The increase in imports is part of China’s commitments in joining theWorld Trade Organisation (WTO) in December last year.“China must uphold the spirit of WTO which is for member countries toliberalise their markets and practise free trade, rather than limit it,”Dr Lim told reporters in Kuala Lumpur yesterday.He had earlier addressed the staff of his ministry at a monthly gatheringwhere he also distributed “Aku Janji” pledge of allegiance certificates.China bought 1.2 million tonnes of Malaysian CPO last year, making it thecountry’s third biggest customer for the commodity.It had prior to joining WTO announced a CPO quota for each year in twotranches, one in March and the other in July.For 2000, it said it would import a total of 1.5 million tonnes, butbought only 800,135 tonnes. Likewise in 2001, the quota was 1.4 milliontonnes and the actual amount imported was 1.02 million tonnes.For this year, it has said the quota would be raised to 2.4 milliontonnes, in line with scheduled market-opening measures under WTO for awide range of goods by 2005.The palm oil quotas for the next three years have been set at 2.6 milliontonnes, 2.7 million tonnes and 2.88 million tonnes, respectively.This has led to industry watchers projecting that Malaysia’s sale of thecommodity to China would surge by 64 per cent to 1.68 million tonnes thisyear, or 70 per cent of the 2.4-million-tonne quota.Malaysia currently accounts for about 50 per cent of the world’s CPOproduction, and Indonesia about 30 per cent.“China must not limit the entry of vegetable oils because Malaysianegotiated hard for the quota and we know that the demand is there.“By not abiding by the quota, China is acting as a hindrance for palm oilprices to go up further,” said Dr Lim.Traders meanwhile said China does not look like it is going to buyanywhere near 2.4 million tonnes of palm oil this year. It is alreadyApril, and will have to import over 250,000 tonnes a month till year-endto fulfil the quota.