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Palm Oil Supply in Malaysia Will not be Good until in the First Quarter of 2022



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Palm Oil Supply in Malaysia Will not be Good until in the First Quarter of 2022

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) supply will be in small number until in the first quarter of 2022 because Malaysia is still lack of workers while high export tax in Indonesia burdens buyers to buy stocks in large numbers.

Sathia Varqa, founder of Palm Oil Analytics in Singapore said, Malaysia is still lack of 70 thousand workers. This is the main reason that the world is lack of CPO supply.  He also mentioned, the lack of workers means the lack of harvest activity and planting, namely in Semenanjung Malaysia where palm oil is not produced from 90 thousand hectares and about 10.000 hectares in Sabah [state of East Malaysia].

“We also predict, CPO production from about 100 thousand hectares could not maximally be got because of land use change which is conversed to be urban,” Varga said in S&P Global Platts (17/11/) as quoted from SPGlobal.

For there was lockdown by Covid-19 pandemic last year, foreign workers that dominate 70% of workers in Malaysian Palm Oil cannot return to the country. That is why CPO production in Malaysia could be decreasing about 18,3 million tons from the previous which reached 19,2 million tons in 2020. (T2)