Ministries in talks on slashing palm oil export tax, says Zuraida
KUALA LUMPUR: The Plantation Industries and Commodities Ministry is in the midst of discussions with the Finance Ministry on the viability of slashing the palm oil export tax to four to six per cent from eight per cent currently.
Minister Datuk Zuraida Kamaruddin said yesterday the government should also consider slowing down the implementation of its biodiesel mandate to help meet global demand amid an edible oil shortage.
“We believe that Malaysian exporters are likely to be clear winners in the short term as global buyers will source for Malaysian palm oil.
“Nevertheless, the ministry urges industry players to focus on market variables that are capable of sparking price volatility.”
Zuraida said the variables included the export policy of Indonesia, recovery of palm oil production in Malaysia, adjustment of biodiesel policies in various countries, progress of the Ukraine-Russia conflict and the weather conditions in the United States and South America.
She said the ministry would continue to monitor the situation in Indonesia to ensure that Malaysia’s palm oil industry continued to contribute to economic growth and benefit industry players as well as smallholders.
Palm oil stockpile rose 11.5 per cent month-on-month to 1.64 million tonnes last month, driven by higher output and weaker exports.
However, Zuraida said this was not a cause for concern.
“This is because palm oil stockpile will likely dip this month due to seasonally lower crude palm oil (CPO) production during the Ramadan month and stronger exports following the Indonesian government’s move to widen its export ban on raw materials for cooking oil.”
Meanwhile, Indonesia announced on Thursday that it would lift the palm oil export ban from Monday following improvements in the domestic cooking oil supply situation.
Zuraida said CPO prices were also likely to consolidate downward due to an increase in fresh fruit bunches production.