FGV expects palm oil exports to rise after export tax suspension

FGV group president/chief executive officer Datuk Zakaria Arshad(pic said FPM aimed to market the products to smallholders nationwide and export them to Indonesia.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) expects a 30%-50% grow palm oil export volumes to India, Pakistan, China and Europe following the suspension of palm oil export duty.

In a statement today, FGV group president and CEO Datuk Zakaria Arshad said industry players were facing with issues of high crude palm oil (CPO) stocks level and strengthening of the ringgit that have pressured the CPO price to around RM2,500 per tonne.

“The government’s action to implement the export tax suspension is timely and an effective way to reduce CPO stocks level that coincides with the increasing demand from China for the upcoming Chinese New Year.

“With this development, we expect a 30-50% percent increase in the export volume to major importing countries like India, Pakistan, China and Europe. This shall also enable us to increase supply to our joint-venture refinery in Pakistan at a more competitive pricing,” he said. 

Based on this situation, Zakaria said FGV expected average CPO prices for the first quarter 2018 to improve slightly by trading around RM2,650 per tonne to RM2,750 per tonne. 

Commenting the overall 2017 performance, Zakaria said FGV’s core business operations had performed well with positive growth on Fresh Fruit Bunches (FFB) production compared to 2016.

“As for 2018, we remain committed in delivering the Strategic Plan 2020 through better core business performance, stronger financial position, enhance governance in all sectors and high performance culture that will deliver sustainable value to our shareholders,” he added.