IPOH: The Government hopes to sign an agreement to export palm oil to Russia when President Vladimir Putin visits Malaysia tomorrow.
Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said the agreement would enable Russia to buy US$50mil (RM190mil) in palm oil from Malaysia under the Palm Oil Credit Payment Arrangement.
We have already held negotiations with Russia and we hope to finalise the dealduring Putin's visit.
There will also be discussions on the sale of the Russian-made Sukhoi Su/30MKM jets and if they finalise the sale, I believe that one third of the value would come from the contra with palm oil, he said after opening the Perak Gerakan delegates annual general meeting yesterday.
He pointed out that strategies to strengthen the country's market position in palm oil trading was to increase the availability of the credit scheme to countries which needed credit and for them to import palm oil by contra trading.
This will open new markets for us and also consolidate old markets, he said.
Dr Lim added that a total of US$10mil (RM38mil) in palm oil under the credit scheme would be made available to Ukraine when Prime Minister Datuk Seri Dr Mahathir Mohamad visits the country on Thursday.
On another matter, Dr Lim said a Cabinet Committee chaired by Deputy Prime Minister Datuk Seri Abdullah Ahmad Badawi has been set up to enhance the income of smallholders.
He said several government agencies such as Felda, Felcra and Risda would also be a part of the committee.