Palm oil prices may rise to RM3,000 per tonne next year

Crude palm oil (CPO) prices may rise to RM3,000 per tonne next year on the back of an increase in demand, especially from India, Deputy Plantation Industries and Commodities Minister Datuk Nasrun Mansur said.

He said India needed palm oil from Malaysia to support its biodiesel industry.

"The Indian government has introduced biodiesel blends in its market and is currently negotiating to import our palm oil," he told reporters at the Palm Oil Familiarisation Programme (POFP) 2016 here today.

The CPO price hit RM2,798 per tonne on Wednesday last week, the highest recorded so far this year.

Nasrun said the government is working tirelessly to utilise existing palm oil stock in the country to ensure price stability.

"If our (palm oil) products are dependent on overseas demand, prices will not be stable, as there may be a time when imports will fall short of demand," he said.

Nasrun said India was Malaysia's biggest importer of palm oil, exceeding China last year.

Malaysia's total palm oil production in 2015 amounted to an all-time high of 19.96 million tonnes. Exports totalled 17.441 million tonnes worth RM41.23 billion.

In 2015, palm oil and palm oil products contributed RM62.22 billion to the country's export earnings and employed more than 600,000 people in all sectors of the industry.

"To further strengthen (position), the Malaysian Palm Oil Board will be opening two regional offices, namely in Mumbai (India) and Tehran (Iran), to facilitate technical support and advisory services," said Nasrun.

The 36th POFP is designed to provide participants with a basic knowledge on the dynamics of the Malaysian oil palm industry, its related sectors and activities.