Regional palm oil group

JAKARTA: MALAYSIA and Indonesia will establish  a formal working group among palm oil producing countries called Council of Palm Oil Producing Countries (CPOPC) by the end of this month.
   
In a joint statement issued out of Jakarta recently, both Indonesia and Malaysia governments announced this new body will strengthen regional efforts at stabilising the price of palm oil and promote benefits of palm oil industry and its derivatives.
   
The Malaysian delegation was led by Plantation Industry and Commodities Minister Datuk Amar Douglas Uggah Embas and Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim. 
   
This bilateral meeting was also joined by Indonesia Palm Oil Association, BPDP Sawit (Indonesia Palm Oil Fund), the Malaysian Palm Oil Association, Sarawak Oil Palm Plantation Owner Associations; Malaysian Palm Oil Board; and the Malaysian Palm Oil Council
   
Both countries reiterated that palm oil is a strategic commodity and that the oil palm is a miracle crop.
   
The palm oil value chain is important for both countries in terms of employment, foreign exchange earnings and socio-economic interests of smallholders in bridging rural and urban development gap.
   
In playing a more meaningful role in the international trade arena, both governments have agreed to  harmonise standards of the Malaysian Sustainable Palm Oil and the Indonesian Sustainable Palm Oil.

The Malaysian Palm Oil Board (MPOB) will implement a RM100 million replanting incentive scheme beginning October 1 until December 31, this year.
   
Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas said the scheme targeted the replanting of 83,000ha of unproductive and old palms.
   
Approval for the scheme would be based on first-come-first-serve basis, with an incentive allocation of RM1,500 per hectare for an approved area of 33,000ha under Phase One.
   
Meanwhile, an incentive of RM1,000 per hectare would be allocated for an approved area of 50,000ha under Phase Two.
   
Uggah said the implementation of the incentive scheme would contribute to a reduction of crude palm oil (CPO) production by 250,000 tonnes. Hopefully, this will reduce national palm oil stocks and help stabilise palm oil prices.
   
Applicants for the incentive scheme are encouraged to submit their applications online via www.mpob.gov.my from October 1.