KUALA LUMPUR – Panic-buying by global consumers to cover the short-term deficiency in edible oil supplies from Ukraine is likely to continue until the Russia-Ukraine conflict settles down.
Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin has announced that the government will use the rising prices of crude palm oil (CPO) as an opportunity to increase the country’s market share of palm oil in the global edible oil market.
In a statement today, Zuraida noted that Ukraine is the world’s largest producer and exporter of sunflower oil with a market share of 47% of global exports, while Russia’s share in the same market stands at 29.9%.
“These two countries accounted for 60% of global sunflower oil production in 2020 and 2021,” she said, adding that sunflower oil is the world’s third-most traded vegetable oil after palm and soybean oil.
According to Zuraida, CPO prices topped RM8,000 a tonne for the first time on March 1, with consumers rushing to source the oil amid the shortage of sunflower oil caused by the ongoing attacks on Ukraine by Russia.
“The increased revenue from the demand spikes for palm oil will greatly help Malaysia as we continue to recover from the effects of the Covid-19 pandemic.
“The ministry, along with the relevant agencies, will continue to guarantee the future of smallholders and Malaysian palm oil industry players,” she said.
She added that over the last few days, meetings have been held with numerous stakeholders in the agro-commodity industry over the rising prices.
The meetings, which included players from other countries such as Egypt, India and Bangladesh, were part of the ministry’s preparations considering the uncertainties arising from the current global geopolitical situation.
Commenting on whether the stock of government-subsidised cooking oil will be sufficient to meet local demands, Zuraida assured that there is adequate supply and no cause for worry.
“The ministry had anticipated the rising cost locally and elsewhere. We understand that there are concerns, especially in light of the Covid-19 pandemic and the Russia-Ukraine conflict.
“However, there is sufficient supply to meet the needs of everyone in the country.
“This is the government’s commitment to all citizens in line with the Keluarga Malaysia spirit,” she added. – The Vibes, March 4, 2022
