Malaysia mulls CPO tax waiver as palm oil stocks hit record 3.5 million tons
In Malaysia, New Straits Times reported that Malaysia is considering waiving the crude palm oil (CPO) export tax to help clear record-high stockpiles and narrow the pricing gap with Indonesia.
The report noted that the move aims to make Malaysian exports more competitive and help producers regain lost market share.
The proposal comes as Malaysia’s palm oil inventories climbed to 3.5 million tons last month, putting growing pressure on exporters because Indonesian palm oil continues to enjoy a significant price advantage.
The Plantation and Commodities Ministry is expected to discuss the proposal with industry players.
ESG Malaysia executive director Harald Sippel said a temporary waiver of crude palm oil (CPO) export tax could help Malaysia reduce swelling inventories and boost exports.
However, it is unlikely to close the price gap with Indonesia or deliver lasting competitiveness.
Sippel said Malaysia’s 3.5 million tons of palm oil stocks will require broader measures to clear, as Indonesian palm oil remained significantly cheaper despite the country imposing higher export duties and levies, the report added.
Category: Food & Agriculture
