World palmoil output up

World palmoil output up

KUALA LUMPUR (AFP): Malaysia, the world's largest producer of
palm oil, Saturday said world production of the commodity will
record only a marginal increase in 1998 due to drought and haze.

"... the prediction is that 1998 will not see a big increase
in palm oil production, about 0.2 million tons," said Hishamuddin
Tun Hussein, deputy minister of the primary industries ministry.

"This is on account of a number of factors including the
drought effect of El Nio, lower expansion in planted areas, the
haze and also the downsizing effect of the natural biological
cycle," he said.

Hishamuddin said in 1997, world production of palm oil stood
at 17.4 million tons. He made the comment in his opening remarks
to the ninth annual palm and lauric oils price outlook forum
1998/1999 here.

Millions of people in Singapore, Malaysia and other parts of
Southeast Asia were affected by a severe haze in the latter half
of 1997, triggering an international effort to douse Indonesian
forest fires which caused it.