B10 biodiesel programme buoys palm oil prices

By BERNAMA | 21 March 2019

KUALA LUMPUR: The implementation of B10 programme, a mixture of 10 per cent palm oil biodiesel and 90 per cent diesel for transportation sectors, has helped propped up the prices of palm oil, the Dewan Rakyat was told today.

Primary Industries minister Teresa Kok said the average price of palm oil for January and February this year had increased to RM2,037 a tonne and RM2,122.60 a tonne respectively, compared to RM1,794.50 a tonne in December last year.

The minister said that when replying to the additional question by Yusuf Abd Wahab (BN-Tanjong Manis) on efforts by the ministry to help smallholders hit by the lower price of agro products such as oil palm and rubber.

“The government have also signed documents with Chinese companies to export 1.62 million tonnes of palm oil worth RM3.64 billion to the republic, involving four Malaysian companies and three from China," said Kok.

“The agreement was a follow up from a visit by the ministry to China in August last year to increase the purchase of Malaysia’s palm oil,” said Kok.

Besides that, the ministry would also reinforce the country’s palm oil market in India which is the largest buyer of the commodity and in other potential markets such as Iran, Egypt and African countries through trade missions, she added.