KUALA LUMPUR, Oct 4 — The decline in Malaysian palm oil stocks is positive as it proves that the government’s efforts to increase palm oil exports have been successful, Primary Industries Minister Teresa Kok Suh Sim said today.
She said Malaysian palm oil exports recorded an increase of 19.7 per cent to 12.6 million tonnes for a period from January to August 2019, compared 10.53 million tonnes registered in the corresponding period last year.
“This will contribute to higher palm oil prices,” she said when responding to Datuk Seri Ismail Abd Muttalib’s (BN-Maran) question on her ministry’s effort in dealing with the decline in Malaysian palm oil stocks.
Malaysian palm oil stocks said Kok, was experiencing a downward trend this year from three million tonnes in January to 2.25 million tonnes in August 2019, while the current palm oil stocks level stood at 2.45 million tonnes on October 10, 2019, which was at the optimum level.
“In addition, the government has now suspended the export duties of crude palm oil (CPO) until December this year to address the situation of high palm oil stocks.
“The government is indeed trying to lower the level of palm oil stocks to an optimum level as the supply of palm oil earlier this year has been at a level that exceeded its demand of three million tonnes,” she added.
Her ministry said Kok, was working hard to reduce the palm oil stocks to stabilise the prices and increase revenue to the entire palm oil industry including smallholders.
“However, the Primary Industries Ministry will continue to monitor the country’s palm oil stocks so that they are at an optimum level to meet the current domestic market demand,” she said.
On the possibility of palm oil boycotts in India, Kok said her ministry would hold regular meetings and negotiations on the matter.