Malaysia weighs temporary crude palm oil export tax waiver
Inventories reached a record in September, while the export duty for November was kept at 10%.
Malaysia is considering temporarily waiving its crude palm oil export tax to increase exports and draw down record stockpiles, Bloomberg reported. Senior officials from the Ministry of Plantation and Commodities are to discuss the proposal with leading industry executives, according to unidentified people cited by the newswire.
The country's palm oil stocks hit a record in September. Malaysia is the world's second-largest producer, and the inventory increase comes as extreme heat linked to El Niño threatens to reduce yields.
Crude palm oil exports face tiered duties ranging from 3.0% to 10% when the price exceeds RM2,250 per tonne. The highest rate applies above RM4,050. November's duty remains at 10%, with RM4,323.78 used as the reference price.
A waiver could enable Malaysia to win back some market share from Indonesia, Bloomberg reported. Indonesia last increased its combined palm oil export tax and levy to US$308 per tonne for October.
