AreaMalaysia
Commodity GroupOilseeds, oils and meals
CommodityPalm oil
Date01/02/2021
Policy CategoryProduction
Policy InstrumentSector development measures
DescriptionLinked to the firmness in palm oil prices, raised the cess collected on palm oil products by the Malaysian Palm Oil Board. Reportedly, the additional proceeds would be used to support the establishment of a consortium charged to conduct research on mechanization and automation in the oil-palm sector.
NotesMALAYSIA palm oil production cess: Based on the recent firmness in palm oil prices, the Government decided to raise the cess collected on palm oil products by the Malaysian Palm Oil Board (MPOB) from MYR 14 per tonne to MYR 16 (USD 3.42 and 3.90 respectively), effective 1 March 2021. The cess was last raised in 2019. According to industry estimates, with the new cess rate, the countrys palm oil growers will contribute about MYR 344 million per year (USD 83.9 million) to the MPOB. Reportedly, the proceeds from the additional cess collection will be used to support the establishment of a consortium charged to conduct research on mechanization and automation in the oil palm sector.
