Minister of Plantation Industries and Commodities, Datuk Zuraida Kamaruddin said demand for Malaysian palm oil will not be affected despite Indonesia deciding to temporarily offer levy breaks for producers in order to clear stockpiles and inventories.
The Minister added that demand for palm oil is constant and that the world will require the product, the only difference will be pricing as locally produced the commodity will be more expensive than in Indonesia which has ample labour and enough access.
Malaysia has a strong trade partnership for its palm oil, India, China, and the middle east have all shown interest in ordering more stock in view of the rising worry about food security during these unstable geopolitical environments.
The latest move by Indonesia could derail the Ministry’s target of achieving RM300 billion in agro commodity export, Zuraida had said she will be keeping the target intact despite the recent distraction. The country achieved RM204 billion in export for 2021 while the previous year was RM84 billion.
