KUALA LUMPUR: Malaysia's crude palm oil (CPO) production is likely to hit 18.3 million tonnes this year compared with 17.3 million tonnes in 2008 on improved yields, the Malaysian Palm Oil Board (MPOB) director general Datuk Mohd Basri Wahid said on April 7.
In terms of the country's palm oil stockpile, the MPOB expected March's palm inventory to fall to 1.5 million tonnes from 1.56 million tonnes in February on low productivity as planters undertook replanting.
Palm production tend to be lower when planters carry out replanting exercises on their land. Under a replanting scheme announced last year, planters who carried out replanting would receive RM1,000 per ha of land cleared for new plantings.
Plantation Industries and Commodities minister Datuk Peter Chin announced that it would not be mandatory for palm oil millers to implement methane-gas trapping capabilities.
"The ministry does not want to impose a mandate that all palm millers must install the methane gas trapping facilities. I do not want to give the impression that we are introducing regulations...Rather we want to adopt an approach where we would assist millers to upgrade their facilities so that it could be capable of trapping methane gas in the future," Chin said.
Speaking to reporters after the annual dialogue between planters and relevant government agencies, Chin said the plan was part of a process to ensure the sustainability in the palm oil industry.The Malaysian Palm Oil Board (MPOB) targets crude palm oil (CPO) production for 2009 at about 18.3 million tonnes, up from 17.3 million tonnes last year. The higher output is based on expectations national average yield target of 20.5 tonnes per ha on better yields. Malaysian Palm Oil Association chairman Datuk Azhar Abdul Hamid said on April the current CPO price was good, demand for commodity fairly stable and was likely that prices would remain at current levels. "The industry is very happy with current CPO prices," he said. CPO price for third month delivery rose RM12 to RM2,111 at the midday break.