THE Government will implement measures to reduce supply and increase the usage of palm oil in order to maintain the crude palm oil (CPO) prices at around RM2,000-RM2,600 per tonne.
The measures include accelerating the replanting of oil palm trees that are more than 25 years old, increasing the usage of biofuel and developing downstream activities, said the Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui.
He noted that the Government had allocated RM200 million for replanting and vehicles owned by it would start using biofuel in two to three months.
A "fair" price for palm oil is between RM2,000 (US$562) a ton and RM2,600, he told reporters today in Putrajaya, outside Kuala Lumpur.
Malaysia, the world's second-largest palm oil producer, expects output of the edible oil next year to rise 2.9 per cent to 18 million tons.
Chin said he expects the nation's palm oil production this year to be 17.5 million tons. - Agencie
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