Malaysia and Indonesia to discuss crude palm oil (CPO) benchmark pricing

Published 2023년 1월 26일

Tridge summary

Malaysia is set to hold discussions with Indonesia about the latter's plans to establish its own crude palm oil (CPO) benchmark price, as the decision is expected to have far-reaching implications for the entire oil palm industry. The talks, scheduled for February, will also address the European Union’s ban and trade barriers on palm products. In 2022, the agri-commodity sector in Malaysia saw trade value and balance figures of RM268.2 billion and RM146.5 billion, respectively, with export revenue reaching RM207.3 billion. Despite a slight decrease from the previous year, the sector is expected to show positive growth in 2023, with oil palm sector facing challenges like labor shortages that resulted in an estimated loss of RM20 billion in revenue in 2022.

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Original content

PUTRAJAYA (Jan 26): Malaysia will hold a meeting with the Indonesian government to discuss the republic’s intention to have its own crude palm oil (CPO) benchmark price, said Deputy Prime Minister and Plantation and Commodities Minister Datuk Seri Fadillah Yusof. He said the matter needs to be discussed jointly, as Indonesia’s plans will affect the entire oil palm industry chain, not just Malaysia, but also globally. The deputy prime minister said the meeting to resolve this matter beneficially for all parties had been proposed to take place in the second week of February. “A discussion must be held before any decision on price setting is taken for the benefit of the plantation sector in both nations,” he said at a press conference after attending the Ministry of Plantation and Commodities’ New Year Mandate ceremony here on Thursday (Jan 26). Indonesian Trade Minister Zulkifli Hasan reportedly said the republic plans to establish its CPO benchmark price before June, and will no ...

Source: Theedgemarkets