Cash in now on palmoil price rise, says Malaysian minister<\/p>\n
KUALA LUMPUR (AFP): The sudden sharp rise in palmoil prices is
\nlimited and producers should cash in now, Malaysian primary
\nindustries minister Lim Keng Yaik warned Saturday.<\/p>\n
\"Sell now. Sell forward .... This is good enough price. Sell
\nwhatever you have,\" Lim told reporters.<\/p>\n
Malaysia, the world's largest palmoil producer, watched with
\ndismay as the price plunged from a high of 2,377 ringgit (626
\ndollars) a tonne in 1998 to around 800 ringgit in mid-July.<\/p>\n
But prices have risen sharply in the last two weeks and on
\nFriday hit 1,180 ringgit a tonne, he said.<\/p>\n
Lim predicted the upward price could last for about six
\nmonths.<\/p>\n
But he said that exporters and traders were too often waiting
\nfor prices to climb further before selling. \"I appeal to them to
\nsell forward,\" he said.<\/p>\n
\"The more they sell forward it will boost exports, reduce
\nstocks and will spur price upwards.\"<\/p>\n
Lim said the surge in price was due to the government's
\nability to cut crude palmoil stocks from 1.5 million tonnes to
\n1.05 million tonnes since January and forecasts of bad weather in
\nother major edible oil producing countries like India and China.<\/p>\n
The price had also been boosted in Malaysia by the replanting
\nof old palmoil trees, he said.<\/p>\n
\"If 200,000 hectares are cut down by the end of the year, then
\nsome 600,000 of crude palmoil production can be withheld,\" he
\nsaid.<\/p>\n
Lim said 4,300 applications for replanting involving some
\n150,000 hectares (representing 75 percent of the target) have
\nbeen received.<\/p>\n
\"I am afraid those who have applied might opt out now that the
\nprice has gone up,\" he said.<\/p>\n
Under a programme to encourage the replanting of trees which
\nare more than 25 years old, the government is providing a loan of
\n6,000 ringgit per hectare and a one-off 1,000 ringgit per hectare
\nto smallholders and plantations.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cash-in-now-on-palmoil-price-rise-says-malaysian-minister-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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