Call to boost
competitiveness
MALAYSIA'S palm oil sector must go all out to boost its
competitiveness as crude palm oil (CPO) prices are extremely volatile,
fluctuating against a backdrop of uncertain supply and demand situation as well
as strong competition from the world's other 16 edible oils and fats.
Plantation Industries
and Commodities Minsiter Tan Sri Bernard Dompok said the global economic
slowdown in the third quarter has contributed towards raising the domestic
stocks level, which resulted in lower crude palm oil (CPO) prices compared with
2011.
Malaysia's CPO prices
are hovering between the RM2,200 and RM2,300 a tonne level compared with an
all-time high of over RM4,000 in 2008.
"The government has implemented measures to enhance
the competitiveness of the palm oil industry, including restructuring the
export duty on CPO and providing replanting incentives beginning this year.
"This move is aimed
at reducing the CPO stocks and strengthening its prices," Dompok said in
his keynote address here yesterday at the 24th annual Palm and Lauric Oils
Conference and Exhibition 2013: Price Outlook 2013/2014.
He added that in situations of uncertainty, price
discovery is necessary for the traders, especially in mitigating risk factors
and Malaysia, as the preferred benchmark for the pricing of palm oil globally,
has attracted strong attention from international traders.
Dompok said as at
December 2012, foreign trading participation for crude palm oil futures (FCPO)
contract was recorded at 30.2 per cent, an increase from 28.7 per cent in 2011.
He said Malaysia, which is the second largest producer of
CPO after Indonesia, will continue to drive the growth by seeking opportunities
to expand partnerships to strengthen connectivity with the rest of the world.
Malaysia recorded a palm oil production of 18.8 million
tonnes last year, accounting for some 10 per cent of global palm oil output.
Source: Business Times
Date: 06 March 2013
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