July 1, 2022
PETALING JAYA – Palm oil millers that have stopped buying fresh fruit bunches (FFB) risk having their operating licence suspended, says the Plantation Industries and Commodities Ministry.
Its Deputy Minister Datuk Seri Dr Wee Jeck Seng said the Malaysian Palm Oil Board (MPOB) had issued a warning letter to all millers Thursday (June 30).
“The warning letter was issued to all millers for them to carry out milling operations in compliance with the legislative requirement under the Malaysian Palm Oil Act 1998 (Act 582)
“MPOB will take action against millers that affect the nation’s palm oil production.
“Drastic action, including suspending their operating licences, will be taken if it is proven that this has happened, for the survival and sustainability of our palm oil industry,” he said in a statement.
Wee said he was disappointed by the millers’ decision to halt production and stop buying FFB, adding that their action has made meaningless the whole purpose of issuing operating licences.
“I take this matter seriously and request palm oil millers to not halt production, which is required under their licence, to avoid any legal action.
“Hopefully, this directive can be fully implemented by the millers in support of the government’s efforts to continue improving palm oil output in the market, which is now facing the challenge of declining prices,” he added.
Some palm oil millers had apparently suspended production following a dramatic plunge in the price of the edible oil.
The price of Malaysian crude palm oil (CPO) saw its biggest one-month decline in more than 13 years in June, tumbling 22% to RM4,922 on Monday from a high of RM6,632.