KUALA LUMPUR – Smallholders, especially those who have received agricultural training, are poised to benefit from the surge in crude palm oil (CPO) price, which is expected to continue to rise on the back of ongoing high demand.
Malaysian Palm Oil Board chairman Datuk Ahmad Jazlan Yaakub said CPO price has soared to an eight-year high at RM3,501.50.
“We expect the price to remain stable at RM3,400,” he said during a talk show programme.
He attributed the uptrend to the stabilisation of stock inventories, as well as an increase in demand due to a shortage of other oil resources as a result of the La Nina weather pattern.
Jazlan said despite the Covid-19-triggered global economic contraction, the country’s palm oil sector remains intact, driven by stable demand.
“Despite opposition from the European Union, they are the third largest importer of palm oil after China and India.
“We are working to correct their negative perception of the local palm oil industry by introducing sustainable certification and finding new markets to explore.”
He added that the palm oil industry played an important role in strengthening the country’s economy, having contributed about RM67.55 billion in terms of cash flow to the nation. – Bernama, December 3, 2020
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