DESPITE fears of boycotts of Malaysian palm oil, things are looking up for the crop as stocks have gone down while prices increased, Primary Industries Minister Teresa Kok told the Dewan Rakyat today.

Palm oil stocks fell from three million tonnes in January to 2.25 million tonnes in August.

As of October 10, Kok said palm oil stocks stood at optimum levels at 2.45 million tonnes.

“The government was, in fact, trying to reduce palm oil stocks to optimum levels because the supply of three million tonnes exceeded demand. On that note, my ministry had tried its best to reduce stocks to stabilise palm oil prices in order to increase the income of all parties in the supply chain, including smallholders.”

She was responding to Ismail Muttalib (BN-Maran) on the steps to reduce stock and what efforts taken to ensure that import and exports are not affected.

“Reduction of the palm oil stocks is a good and positive phenomenon as it proves that the government’s efforts to increase exports is paying off.”

Palm oil exports between January and August increased to 12.6 million tonnes compared with the 10.53 million tonnes in the corresponding period last year, thus pushing palm oil prices upward.

The government has also suspended export duties for crude palm oil (CPO)  from June to December this year to spur exports.

Kok said her ministry will continue to monitor that stocks remain at optimum levels to meet market demand.

Efforts taken by the ministry include lowering CPO export duties from 4.5% to 3% from January 1, 2020 and encouraging refineries to reduce imported palm oil.

Meanwhile, commenting on the European Union’s stance on palm oil and the recent boycott call by India, she said the conditions for the industry remain favourable as prices have risen.

The Seputeh MP said her ministry official will meet with their Indonesian counterpart in Jakarta this week to discuss what measures can be taken to address the current market and industry conditions.

“As for India and China, they are big importers. We will always engage in meetings and negotiations through diplomatic channels to improve exports.”

She was responding to a supplementary question by Ismail on the what measures taken to maintain good ties with palm oil importers.

Meanwhile, Kok later said that it is important to understand that the boycott call did not come from the Indian government.

It was the trade body Solvent Extractors’ Association of India which has advised its members to stop buying palm oil from Malaysia.

This was in response to Malaysia’s criticism of India on the Jammu-Kashmir situation. 

“We need to understand that the Indian government has not said that they will boycott  or ban Malaysian palm oil imports.”

Exports to India have in fact increased, she said.

Malaysia will also import raw sugar and buffalo meat from India, she said, as part of efforts through diplomatic channels to maintain bilateral ties. – November 4, 2019.