THE Government will use the escalating prices of crude palm oil (CPO) as an opportunity to increase the country’s market share of palm oil in the global edible oil market.
Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said over the last few days, she has met with numerous players in the agri-commodity industry over the rising prices of CPO.
“These include players from other countries as well such as Egypt, India and Bangladesh,” she noted in a media statement. “This is part of our ministry’s preparations in the face of uncertainties arising from the current geopolitical situation in the world.”
CPO prices topped RM8,000 a tonne for the first time on Tuesday (March 1) as consumers rushed to source for the oil amid a shortfall in sunflower oil caused by the Russia-Ukraine crisis.
March CPO futures contract recently jumped RM712 to RM8,163/metric tonne (MT) while April contracts rose RM663 to RM7,435/MT. The benchmark May contracts gained RM463 to RM6,762/MT.
Research, according to Zuraida, indicated that panic buying by consumers to cover the temporary shortfall in edible oil supplies from Ukraine is likely to continue until the situation improves.
Ukraine is the world’s largest producer and exporter of sunflower oil with a market share of 47% of global exports while Russia’s share in the global exports stands at 29.9%. These two countries accounted for 60% of the global sunflower oil production in 2020 and 2021.
Sunflower oil is the world’s third-most traded vegetable oil after palm and soybean oil.
“The increased revenue from the spikes in demand for palm oil will greatly help the country which is still recovering from the effects of the COVID-19 pandemic,” Zuraida pointed out. “MPIC along with the relevant agencies will continue to guarantee the future of smallholders and all Malaysian palm oil industry players,” she said.
Zuraida also reminded players to take advantage of the “good times” income to upgrade their living quarters and other facilities for the future.
“As for the smallholders, I urge them to enhance their management and take this opportunity to focus on their savings,” she added.
On the supply of government-subsidised cooking oil to meet local demands, Zuraida assured the public that there was adequate supply and no cause for concern.
“We anticipated the rising cost locally and elsewhere. We understand there are concerns, especially with the COVID-19 pandemic and the Russia-Ukraine conflict, particularly among the B40 group,” she stressed.
“But rest assured there is sufficient supply to meet the needs of everyone in the country. This is the Government’s commitment to all Malaysians in line with the spirit of Keluarga Malaysia (Malaysian Family).” – March 4, 2022
