KUALA LUMPUR (Nov 20): The Malaysian Palm Oil Board is in favor of any move by Indonesia and Malaysia as the world’s largest producers of palm oil to form a body similar to the Organisation of Petroleum Exporting Countries (OPEC).
The move would enhance transparency and maintain crude palm oil (CPO) price at the same time, it said.
MPOB director-general Dr. Ahmad Parveez Ghulam Kadir said the world is currently depending on Malaysia for updates on the CPO price. In this regard, the board would make the announcement on the CPO price, stocks, production and export markets every tenth of the month.
Both Indonesia and Malaysia contribute 87 percent of the global supply, creating a duopoly market of the most versatile edible oil.
Ahmad Parveez noted that under the Council of Palm Oil Producing Countries (CPOPC) currently, both member countries Indonesia and Malaysia were only looking at issues pertaining to how they could work together, particularly in countering the European Union discrimination against palm oil.
“So far in terms of trade and marketing each country does so on their own,” he added.
Former Malaysian ambassador Dr. Azhari Karim wrote to NST yesterday, calling the Government to consider following the footsteps of the OPEC by establishing a similar organization to comprise mainly palm oil producers, millers, and consumers.
“The issue of pricing continues to plague the industry, as we depend largely on countries which have large populations such as China and India, the two largest buyers of our palm oil.
“Anything that can lead to lower demand from these two countries, whether due to internal or other political and economic factors, will certainly affect palm oil prices,” he said, adding that the demand for palm oil would also be dependant on the performance of other vegetable oils in the world.
Credit: November 20, 2019 21:03 pm +08, Bernama News