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Malaysia, world’s second-largest crude palm oil (CPO) producer and exporter, would continue its duty-free export tariff in January 2015, according to the customs department
Beginning September 2014, Malaysian authorities implemented a duty-free CPO export policy in an effort to boost global demand and support international CPO prices, which has fallen nearly 20 per cent this year.
Indonesia, which has seen duty-free CPO shipments since October 2014, is expected to follow suit, Reuters reported.
Crude palm oil (CPO) prices were currently near five-year lows amid weak demand from China and India, the world’s two largest CPO importers. Moreover, due to declining oil prices, demand for palm oil-based biofuels has fallen, reports have said.
CPO prices are not expected to recover soon and, therefore, Malaysia and Indonesia might maintain the zero per cent export duty until March 2015.