Mah (centre) receives a courtesy call from Malaysian Furniture Council delegation led by its president Chua Chun Chai (fourth left). — Bernama photo
PUTRAJAYA: The average price of crude palm oil (CPO) is expected to average RM2,500 per tonne this year compared with RM2,219 per tonne last year.
Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said the average price projection is underpinned by good demand from importing countries such as China and India.
“The CPO price is currently touching more than RM2,800 per tonne and the price range is expected to remain stable over long periods of time,” he told the media after receiving a courtesy call from the Malaysian Furniture Council here yesterday.
Mah said that the average price of more than RM2,800 per tonne achieved was the highest this year, driven by demand from China, which would be celebrating the Mooncake Festival, and India, which would be celebrating the Deepavali.
On the proposed B10 biodiesel programme, he said it was supposed to be fully implemented nationwide by end of this year.
“If we were to use the B10 biodiesel, it will help reduce 2.6 million tonnes of carbon dioxide, so this will give a positive impact in terms of pollution and this is the way forward,” he said, adding that the implementation set for the fourth quarter of this year is realistic and necessary.
The B10 biodiesel is a blend of 10 per cent palm methyl ester and 90 per cent regular diesel.
Mah said about 750,000 tonnes of palm oil would be consumed in a year with the implementation of the B10 programme.
On concerns over the effects of B10 on car’s engine, he said studies conducted by the Malaysian Palm Oil Council showed that it would not harm the engine.
On the overall performance of commodity exports, he said total exports for first half of the year increased 2.9 per cent to RM71.4 billion from RM69.4 billion in the same period last year.
“The commodity sector remains the country’s biggest net importer at RM41.2 billion, followed by the electrical and electronic sector at RM33.6 billion,” he said.
As for commodity exports, he said palm oil was the largest contributor with total exports for the first six months of this year amounted to RM30 billion followed by rubber at RM11.8 billion. — Bernama