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

RBD Palm Oil

Indonesia

Malaysia

Published Jan 27, 2023

Tridge summary

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.

Original content

PUTRAJAYA (Jan 26): 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 longer have to depend on Kuala Lumpur. Indonesia is the world’s largest palm oil producer, with almost 50 million tonnes of CPO annually. On Jan 12, Malaysia Palm Oil Board director general Datuk Dr Ahmad Parveez Ghulam Kadir said the CPO price this year is expected to fall between RM4,000 and RM4,200 per tonne, compared with RM5,087.50 a tonne in 2022. Fadillah said the issue of the European ...

Source: Theedgemarkets