KUALA LUMPUR (Oct 6): Malaysia plans to limit Indonesian palm oil imports in a move to curb rising domestic inventory.
Malaysia's Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas said the country intended to control the import volume of palm oil from Indonesia instead of an outright ban.
"If we don't do anything now, it is expected that palm oil inventory would exceed 3 million tonnes by November. And I would not use the word 'ban', we are just minimising the import volume.
"For some imports that involve long-term contracts, they will still continue," Uggah said at a press conference after launching Malaysian Palm Oil Board's International Palm Oil Congress and Exhibition.
Uggah said the government hoped to reduce Malaysia's palm oil inventory to below two million tonnes.
The inventory for August this year was higher at 2.49 million tonnes versus 2.27 million tonnes in July.
Today, Uggah said besides import control, the B10 biodiesel programme would help increase palm oil consumption as well.
He, however, declined to reveal the targeted date for the B10 biodiesel introduction.
B10 biodiesel comprises 10% palm biodiesel and 90% petroleum diesel.
"We will be presenting the B10 biodiesel proposal in the upcoming Cabinet meeting and continue to engage with industry players on this matter," Uggah said.
On the conclusion of the Trans-Pacific Partnership Agreement (TPPA), Uggah said Malaysia welcomed the news. He believes the plantation industry will benefit from the TPPA.
"With the TPPA, our products can have access to member countries, hence, increasing our exports," he said.