Palm oil prices to stay between RM3,500 and RM3,600 in short term, says Chin
Bernama (8/5/08): Palm oil prices are expected to stay between RM3,500 and RM3,600 a tonne in the short term on strong demand and the shortage of vegetable oils worldwide, said Plantation Industries and Commodities Minister, Datuk Peter Chin Fah Kui.
"In the long term, they are expected to stay above RM3,600 a tonne but this will depend on the crude oil price," he said at a question-and-answer session at the Dewan Rakyat here Thursday.
Crude oil price touched a record US$123 a tonne yesterday on fears of supply shortage.
Chin said this in reply to a question by Datuk Abu Bakar Taib (BN-Langkawi) on whether the palm oil prices would be stable in the long and short term and whether the government would boost the cultivation of the crop and the incentives to new planters.
"The government is encouraging the cultivation of palm oil in areas which are suitable and will adopt sustainable agricultural practice," he said.
Chin said the government has offered incentives to those involved in the cultivation of palm oil, especially to smallholders to replant or plant new crops.
He said Malaysia has also teamed up with Indonesia to counter anti-palm oil propaganda among the Western non-governmental organisations (NGOs).
"Malaysia and Indonesia produce about 85 percent of the world's palm oil.
"The NGOs in the West purposely launch the campaigns to tarnish to good name of the product even though they know it's not true. The palm oil production in Malaysia is sustainable," he said.
He said the high demand for biodiesel could influence the price of palm oil in the country.
Chin said this in reply to a supplementary question by Mahfuz Omar (PAS-Pokok Sena) on whether the worldwide preference for biodiesel has affected the local palm oil prices and whether government would set the proportion for use as biodiesel and for food.
"Of the 16 million metric tonnes of palm oil output, six million will be used for biodiesel and the rest for food," he said.
"In the long term, they are expected to stay above RM3,600 a tonne but this will depend on the crude oil price," he said at a question-and-answer session at the Dewan Rakyat here Thursday.
Crude oil price touched a record US$123 a tonne yesterday on fears of supply shortage.
Chin said this in reply to a question by Datuk Abu Bakar Taib (BN-Langkawi) on whether the palm oil prices would be stable in the long and short term and whether the government would boost the cultivation of the crop and the incentives to new planters.
"The government is encouraging the cultivation of palm oil in areas which are suitable and will adopt sustainable agricultural practice," he said.
Chin said the government has offered incentives to those involved in the cultivation of palm oil, especially to smallholders to replant or plant new crops.
He said Malaysia has also teamed up with Indonesia to counter anti-palm oil propaganda among the Western non-governmental organisations (NGOs).
"Malaysia and Indonesia produce about 85 percent of the world's palm oil.
"The NGOs in the West purposely launch the campaigns to tarnish to good name of the product even though they know it's not true. The palm oil production in Malaysia is sustainable," he said.
He said the high demand for biodiesel could influence the price of palm oil in the country.
Chin said this in reply to a supplementary question by Mahfuz Omar (PAS-Pokok Sena) on whether the worldwide preference for biodiesel has affected the local palm oil prices and whether government would set the proportion for use as biodiesel and for food.
"Of the 16 million metric tonnes of palm oil output, six million will be used for biodiesel and the rest for food," he said.
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