KUALA NERANG, March 13 — The price of crude palm oil (CPO) is expected to continue to rise at least until the third quarter of this year and is projected to reach RM9,300 a tonne.
Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin said the figure was achievable based on the development of crude palm oil futures contract trading on Bursa Malaysia Derivatives.
“If you monitor crude palm oil futures, Insyallah it will touch RM9,300 a tonne. We think the upward trend in palm oil prices will continue from now until the third quarter of this year.
“The fastest increase is to reach RM9,300 in the third quarter, otherwise it can continue until the end of the year,” she told reporters after officiating at the groundbreaking ceremony for the Crepe Rubber Processing Centre and Rubber Industry Transformation Project (TARGET) here today.
She was asked to comment on the rising trend of CPO which was reported to have soared over RM8,000 at the beginning of last month and was at RM7,546 per tonne as of last Thursday.
Zuraida said the price increase was indeed beneficial to farmers and the government but may cause the increase in prices of palm oil-related products used by consumers.
“However, we still give subsidies, which is 20 per cent of our crude palm oil we subsidise the rakyat, so it is not an issue (even if the price of crude palm oil increases),” she said.
Commenting on the entry of 32,000 foreign workers as announced earlier to meet the needs of the plantation sector, Zuraida said the first batch is expected to arrive in the country as early as the end of April.
“We are in the process of bringing them in, the first batch will enter the country in early May or late April,” she said. — Bernama