KL replaces old palmoil trees

KL replaces old palmoil trees

KUALA LUMPUR (AFP): A Malaysian minister called Tuesday for a mass replanting scheme on older palmoil estates to cut over- production and increase sagging prices.

Primary Industries Minister Lim Keng Yaik said he would propose to cabinet on Wednesday that at least 200,000 hectares (494,000 acres), with trees more than 25 years old, be replanted to improve the yield.

Lim said his ministry wants an incentive of 1,000 ringgit (US$263) per hectare to be paid to encourage the replanting, which could remove about 600,000 tonnes of palmoil from the market.

Speaking at an industry seminar, he proposed that the incentive be payable for up to one year at most.

Malaysia, the world's largest palmoil producer, has watched with dismay as the price plunged from a high of 2,377 ringgit per ton in 1998 to around 700 ringgit at present.

"With the expected production of 11.2 million tons this year and a carry-over stock of 1.4 million tons, we need to be very aggressive in boosting our exports and demand for palmoil," Bernama news agency quoted Lim as saying.