Sarawak palm oil tanks near capacity as government weighs surplus measures
Malaysia’s palm oil stocks hit a record 3.51 million tonnes in September, with a possible crude palm oil export-tax waiver under consideration.
An unexpectedly large harvest and costly freight have left Sarawak’s palm oil tanks close to full, industry executives and planters said, as slower shipments compound a growing surplus. The government is weighing industry proposals to ease the oversupply.
September brought record Malaysian inventories of 3.51 million tonnes and record production, ahead of the customary October production peak. Sarawak supplies more than a fifth of Malaysia’s palm oil, while Bintulu Port handles more than 90% of the state’s exports.
SD Guthrie Bhd president and group chief executive officer Mohd Haris Mohd Arshad said officials from government and industry had discussed ways to reduce stocks, including boosting overseas sales. One potential measure is a waiver of crude palm oil export taxes.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said industry proposals were being reviewed and required more discussion. Haris called for swift government action to allow planning and preparation, citing concerns that farmers might become unable to sell their fruit.
If tank space remains scarce, mills could eventually reduce processing and disrupt fruit deliveries by plantations and smallholders. Planters also cited high diesel prices as a logistical burden. A senior planter said companies had brought extra mills into operation and authorities were exploring other ports in Sarawak.
