Plantation Sector - Indonesia, Malaysia eye joint body to prop up palm oil prices

Indonesia and Malaysia, the world’s dominant palm oil producers, are in talks to form a joint body that will seek to support prices by reducing stocks and controlling supplies of the edible oil, governent trade officials said today.

Malaysia and Indonesia together account for about 90% of global palm oil supplies, of around 40 million tonnes. Trade and commodities ministers discussed bilateral proposals for palm oil at a meeting yesterday, and floated the idea of limiting plantation expansion and stepping up industry and biofuel use.

Although no decisions have yet been made, Indonesia’s Trade Minister Gita Wirjawan said future co-operation would be similar to that already in place for the region’s rubber industry. – Malaysian Insider