Malaysia Looking At Maintaining Palm Oil Stocks At Two Million Tonnes - Minister Uggah

KUALA LUMPUR, Oct 6 (Bernama) -- Malaysia hopes to maintain palm oil stocks at about two million tonnes from the 2.49 million tonnes recorded as at end-August by implementing replanting incentives and minimising imports. Malaysian Minister of Plantation Industries and Commodities Douglas Uggah Embas said the replanting incentives, to be implemented on Oct 1, aims to reduce by 83,000 hectares, the area planted with oil palm and drop production by 250,000 tonnes. "We will also minimise palm oil imports until our stocks reach about two million tonnes. This is a temporary measure and there is no timeline for the target. "To strengthen long-term palm oil prices, Malaysia and Indonesia, which together account for 85 per cent of global production, will also implement a higher biodiesel blend programme," he said. He said this at a press conference after officiating the International Palm Oil Congress and Exhibition (PIPOC) 2015 here Tuesday. He said the three measures were put in place to curb the production level from going higher as some parties are projecting it to reach three million tonnes by November. His ministry, he added, was committed to managing the stocks level as Malaysian statistics have been accepted as one of the main data to indicate crude palm oil (CPO) supply globally. On the Trans-Pacific Partnership Agreement (TPPA) negotiation in Atlanta on Monday, he said while yet to be passed by Parliament, it would create easier access for CPO exports in other markets and give more remunerative prices. Meanwhile, when asked if declining CPO demand from China would affect the local sector, Malaysian Palm Oil Council chairman Lee Yeow Chor said imports from India would help sustain Malaysia's palm oil exports volume. "India has overtaken China in becoming our biggest importer. This year, we are seeing 30 per cent higher exports to India compared with last year," he added. The three-day PIPOC 2015 from Tuesday, organised by the Malaysian Palm Oil Board, is themed, "Oil Palm: Powering the World, Sustaining the Future". -- BERNAMA FBP FBP AS