Thursday, 19 Dec 2019 11:35 AM MYT
The industry regulator has achieved its initial target made earlier this year of reducing Malaysia’s mounting palm oil stocks to 2.5 million tonnes this year from 3.2 million tonnes recorded in December 2018 — its highest level in 20 years. “We will be very happy if the stocks can reduce further to between 1.5 million tonnes to 2.0 million tonnes especially with the implementation of the B20 programme to kick in next year, and it is my wish to see the CPO price trading at RM3,000 per tonne,” Ahmad Parveez told Bernama.
However, today planters especially smallholders can heave a sigh of relief as CPO is trading at above RM2,800 per tonne and the good margins will enable them to fertilise their crops to boost production. “With our full-fledged MSPO-certified palm oil, after three to four years down the road, Malaysian palm oil productivity will start catching up. But whatever production we produce, I hope stocks are always manageable and the CPO price should not go below RM2,500 per tonne,” he said.
“Currently there are 14 associations and I am planning that by early next year we could get these big groups to sit down together with the Minister of Primary Industries Teresa Kok to streamline our tasks.