Sarawak palm oil inventories strain storage capacity amid Malaysia’s supply glut
In Cyprus, Traders Union reported that higher-than-expected palm oil production in Sarawak is putting pressure on storage capacity as Malaysia faces a growing supply glut. This is increasing pressure on the government to accelerate measures to reduce stocks, including considering an exemption from the crude palm oil export tax to stimulate overseas sales, according to the report.
Storage tanks in Sarawak are nearing capacity after a stronger-than-expected harvest and high transportation costs slowed outbound shipments. The state accounts for more than one-fifth of Malaysia’s palm oil production, and most of its exports move through Bintulu Port, which handles more than 90% of Sarawak’s exports, the report stated.
Nationally, palm oil inventories in Malaysia, the world’s second-largest producer, hit a record 3.51 million tons in September, as production also reached an all-time high. This came ahead of the seasonal peak that typically arrives in October, underscoring the growing surplus across the industry supply chain, the report added.
Category: Food & Agriculture
