Oleochem Analytics — Malaysia has maintained the November export duty for crude palm oil (CPO) at 8pc, although the reference price rose for a third consecutive month, a circular on the Malaysian Palm Oil Board (MPOB) website showed on 14 October.
The world’s second-largest palm oil producer calculated a reference price of 4,523.29 ringgit/t for November, up from 4,472.46 ringgit/t in October.
Despite a decline in August, Malaysia’s CPO reference price has increased for 13 months until reaching 4,668.15 ringgit/t in July. November marks the third consecutive month of increases after the August decline, and current reference prices are close to levels seen in May 2021.
Palm oil prices have hit the highest levels seen in a decade as a labour shortage in Malaysia has limited the workforce available to the palm plantations this year.
Malaysia’s Ministry of Home Affairs announced earlier this month that palm oil industry companies, as part of the Agriculture sector, can now hire foreign workers as part of its labour resources.
Malaysia also lifted entry restrictions from five previously banned countries: India, Sri Lanka, Pakistan, Bangladesh and Nepal, where incoming travelers can now enter Malaysia to work, according to a 23 September notification by the Immigration Department of Malaysia.
The two measures are expected to ease the lack of workforce in palm oil plantations and mills that has caused a decline in output during peak harvest and the loss of revenue for planters.