Malaysia still considering proposal to cut tax on palm oil exports According to Reuters

© Reuters. FILE PHOTO: Malaysian Plantation and Commodities Minister Zuraida Kamaruddin speaks during an interview with Reuters in Kuala Lumpur, Malaysia, May 10, 2022. REUTERS/Hasnoor Hussain

KUALA LUMPUR (Reuters) – Malaysia is still considering the viability of a temporary cut in export duties on crude palm oil, the Commodity Ministry said on Friday, after Indonesia lifted an export ban that had wobbled market.

Malaysia, the world’s second-largest palm oil producer, is looking to increase its share of the edible oil market after Russia’s invasion of Ukraine disrupted sunflower oil shipments and Indonesia’s palm oil export ban further tightened supplies. Global.

Indonesia’s top producer said it would lift the ban from Monday and instead impose sales requirements in the domestic market to ensure domestic cooking oil supplies.

Minister Zuraida Kamaruddin told Reuters in an interview last week her ministry had proposed reducing taxes to 4%-6% from the current 8% to the Finance Ministry, which has set up a committee to detailed review.

On Friday, Zuraida in a statement said discussions with the finance ministry were still ongoing.

“This proposed temporary cut is pending and we believe Malaysian exporters are likely to be the clear winners in the short term as global buyers will supply Malaysian palm oil,” she said. ,” she said.

The ministry will continue to monitor the current situation regarding Indonesia’s policy changes, she added.

Looking ahead, crude palm oil prices are likely to fall as production awaits increases but prices will continue to rise until mid-2023 due to tight global supply, strong markets and absorption from the market, Zuraida said. China.

The main market China is poised to increase demand for palm oil later this year as the country gradually reopens its economy in the face of the COVID-19 pandemic, she said.

Zuraida thinks oil and fat supplies will decrease in the fourth quarter, but not by much, with a recovery more likely in 2023.

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