Malaysian palm oil mills allowed to resume

Malaysian palm oil plantations are able to resume operations immediately after producers appealed government closures to curb the spread of the coronavirus.

Non-essential businesses in Malaysia were ordered to shut yesterday until at least 31 March to curb the coronavirus outbreak. But the palm oil industry has been granted a reprieve, according to a circular sent out by the Malaysian palm oil association (MPOA).

"Good for the economy, not for health," said one trader.

MPOA members had been urged to implement standard operating procedures and adhere to government guidelines to contain the virus, or else their approval to operate will be revoked.

Suppliers had been worried about catering to customers given anticipated demand ahead of the Islamic fasting month of Ramadan starting in late April, with February palm oil inventories drawing down to 1.68mn t and their lowest level since June 2017.

By Amandeep Parmar

source: Argus Media