Palm Oil Prices Set By Markets Not Diplomacy Kok Tells Wee


 
Former primary industries minister Teresa Kok says Indonesia throttled supplies, causing prices to rise.PETALING JAYA: Former minister for primary industries Teresa Kok, has denied that the former Pakatan Harapan (PH) government’s poor relations with countries such as India and China had caused palm oil prices to drop at the time.
She said price fluctuations were due to factors such as supply and demand, global weather, production yields, prices of other oil crops, as well as the policies of producers, importers, and such.
Her statement was in response to a posting by Ayer Hitam MP Wee Ka Siong who said oil palm smallholders had told him they were happy that palm oil now fetched RM1,200 per tonne compared to RM330 in November 2019. Wee said the prices had dropped then because of diplomatic problems between the PH government and India and China.
Kok said that Wee, as a Cabinet member, should know that prices were set by the market and not determined by diplomatic relations. She said the current rise in palm oil prices could be attributed to Indonesia’s restriction on exports, which caused a surge in international demand.
However, many smallholders were unable to fully enjoy the higher prices because of rising costs of fertiliser and pesticides and a drop in production caused by a shortage of workers.
“If Wee is sincere in wanting to help oil palm growers in Johor, I challenge him to approve the applications of foreign workers to work in Johor oil palm plantations within a month, in addition to subsidising fertiliser prices,” said Kok.
In a later posting, Wee challenged Kok to find out from smallholders in Johor, including DAP supporters, whether they preferred palm oil prices of the PH era or the current prices. - FMT


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