Malaysia, Indonesia to discuss crude palm oil benchmark pricing

The governments of Malaysia and Indonesia will hold a meeting to discuss issues related to crude palm oil (CPO) benchmark price, according to Malaysian Deputy Prime Minister and Plantation and Commodities Minister Fadillah Yusof.

Malaysian Deputy Prime Minister and Plantation and Commodities Minister Fadillah Yusof (Photo: https://www.theedgemarkets.com/)

Talking to local media on January 26, Fadillah 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.

It is necessary to have a discussion between the two sides before any decision on price setting is taken for the benefit of the plantation sector in both nations, he stressed.

Fadillah revealed that the meeting to resolve this matter beneficially for all parties had been proposed to take place in the second week of February.

Previously, Indonesian Trade Minister Zulkifli Hasan said his country plans to establish its CPO benchmark price before June, and will no longer have to depend on Malaysia.

Indonesia is the world's largest palm oil producer with an output of nearly 50 million tonnes of CPO per year. It is followed by Malaysia with an annual output of about 20 million tonnes./.

VNA