Palm oil price remains at the forefront of edible oil news

KUALA LUMPUR: Crude palm oil (CPO) production is expected to improve by 4.9% to 19 million tonnes this year, from 18.12 million tonnes in 2021.

According to the Malaysian Palm Oil Board (MPOB), this will result in palm oil stocks increasing by 21.1% to 1.95 million tonnes from 1.61 million tonnes in 2021.

“This is great news for industry players and market watchers and shows that Malaysia is ready to respond to encouraging market demand for palm oil, including from Egypt and Qatar.” said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.

She said the price of palm oil has been at the forefront of edible oil news since the start of the Covid-19 pandemic in 2020 and due to the ongoing conflict in Europe.

“The current price spike is driven by prospects for supply of substitute vegetable oils due to uncertainty regarding sunflower oil from Ukraine and Russia.

Tight supply from producing countries has also impacted the global price of palm oil,” it said in a statement today.

Zuraida recently carried out missions to several countries this year to increase exports of Malaysian raw materials, especially palm oil.

The countries visited are Saudi Arabia, Iran, Turkey, Pakistan, India, Bangladesh, Egypt and Qatar.

Malaysian companies have also participated in these ministerial missions to strengthen and restore bilateral relations and among the achievements are proposals to establish joint venture partnerships in India and Pakistan.

Qatar and Egypt have also offered to invest in Malaysian companies and set up production facilities in Malaysia.

This is seen as a strategic move that will speed up the export of commodities to the regions.

The Minister’s last economic and agricultural promotion mission took place in Egypt and Qatar from April 16 to 20.

“As part of MPIC’s initiatives to promote Malaysian agricultural products, we have organized several roundtables to help link trade promotion activities, trade cooperation and information exchange between governments and key stakeholders in the industry, especially for palm oil, rubber, and wood products,” added Zuraida.

Steve R. Hansen