Malaysia could allow duty free palm oil exports

Malaysia, the world’s second-biggest palm oil producer, could extend duty free exports until the end of 2014 if prices of the tropical oil remain at current levels, a leading palm oil producer told Reuters in an interview. Malaysia has allowed duty free exports of crude palm oil for September and October. A further extension in duty free exports would help it reduce stockpiles but also put pressure on rival top producer Indonesia to consider similar measures. Indonesia has allowed duty free exports for October in response to the Malaysian duty structure. ‘If prices remain at the current level, then Malaysia could allow duty free exports in November and December,’ Mohd Emir Mavani Abdullah, chief executive officer of the world’s third-largest palm plantation operator Felda Global Ventures Holdings Bhd, said. Both Malaysia and neighbour Indonesia set export taxes on a monthly basis. In August, Malaysia’s export duty for crude palm oil was 5%, while Indonesia has set its September rate at 9% compared with 10.5% in August, according to told Reuters.