MPOB D-G: CPO price can hit RM3,000 a tonne

KUALA LUMPUR: Malaysia’s crude palm oil (CPO) price can possibly touch RM3,000 per tonne, compared with Tuesday’s level of RM2,493 per tonne, if both Malaysia and Indonesia continue to pursue their palm biodiesel mandates, said Malaysian Palm Oil Board (MPOB) director-general Ahmad Parveez Ghulam Kadir.

“With the right sentiment produced by the biodiesel mandates, along with more replanting programmes being carried out and initiatives to explore new markets to increase exports, it is possible to hit the Rm3,000-pertonne level,” he said without giving any timeframe.

According to Ahmad Parveez, current CPO prices, which hover between RM2,500 and RM2,600 per tonne, are deemed as a “very good” pricing.

“Of course, we would rather go for RM3,000 per tonne, but so far, the level is very reasonable; even the fresh fruit bunches are now at more than RM500 per tonne.

“The prices seem to be very good now. We hope this price momentum can continue,” he told Bernama on the sidelines of the threeday Malaysian Palm Oil Board International Palm Oil Congress and Exhibition 2019 here yesterday.

Touching on the government’s replanting efforts, Ahmad Parveez said the Rm550mil palm oil replanting loan fund for smallholders, announced under the 2020 Budget, would help to increase palm oil yields moving forward.

“So far, about 200 eligible smallholders have approached us for replanting loans. We can see the momentum is there, and we expect to receive more applications in the future,” he said.