Commodity Online
NEW DELHI: Crude palm oil prices will witness a surge in global markets following Pakistan’s decision to import more CPO from Malaysia due the country’s increased refining capacity.

In the recent past Pakistan stepped up its refining capacity to around 4,500 tonnes from 3,000 tonnes daily. This has resulted in increased demand for the crude palm oil in the market. This may result in a rise in prices.

India also depends on CPO import from Malaysia to fill the demand for edible oils in the country.

Following the capacity rise, Pakistan is seeking greater supply of crude palm oil from Malaysia instead of palmolein.

At present, Pakistan’s capacity utilization was less than 50% and to increase it to 80%, Pakistan will need at least 1.3 million tonnes of crude palm oil annually.

Pakistan has reduced the import duty on palm oil from Malaysia by 10%, but the availability of CPO remains constrained.

This is because Malaysia exports palm oils mostly in refined form and only limited volumes of CPO are allowed for export by designated license holders. He also said Pakistan is looking to import 400,000 tons of palm oil for October-December shipment.

Share The Story :

This entry was posted on Wednesday, August 27th, 2008 at 10:23 am and is filed under Palm Oil World News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.