Indonesia, Malaysia to create OPEC-like palm oil price cartel

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Palm oilIndonesia and Malaysia. the world’s top palm oil producing nations, will create a new joint palm oil body tasked with stabilising prices and managing stock levels, the two countries announced on November 21.

The secretariat of the new council will be located in Jakarta and its membership is planned to be extended to all oil palm cultivating countries, including Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, Papua New Guinea, the Philippines and Uganda. Indonesia

Indonesia and Malaysia account for 85 percent of the world’s palm oil production, and the plunge in prices have hurt their economies. They will each invest $5 million in the formation of the new body which will be called Council of Palm Oil Producer Countries (CPOPC) and resemble the structure and functionality of the 55-year-old Organisation of Petroleum Exporting Countries, or OPEC.

“We must be able to chart the direction of the palm oil industry and, with similar objectives, the industry will continue to prosper the people and especially assist the smallholders,” Amar Douglas Uggah Embas, Malaysia’s plantation industries and commodities minister, told a press conference after the signing of the joint council which took place at the ASEAN summit in Kuala Lumpur and was witnessed by Malaysian Prime Minister Najib Razak and Indonesia’s President Joko Widodo.

Malaysia and Indonesia first announced the CPOPC in October with the aim of ensuring further industry cooperation, establishing a global framework for sustainable palm oil, stabilising prices and managing stock levels.

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Reading Time: 1 minute

Indonesia and Malaysia. the world’s top palm oil producing nations, will create a new joint palm oil body tasked with stabilising prices and managing stock levels, the two countries announced on November 21.

Reading Time: 1 minute

Palm oilIndonesia and Malaysia. the world’s top palm oil producing nations, will create a new joint palm oil body tasked with stabilising prices and managing stock levels, the two countries announced on November 21.

The secretariat of the new council will be located in Jakarta and its membership is planned to be extended to all oil palm cultivating countries, including Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, Papua New Guinea, the Philippines and Uganda. Indonesia

Indonesia and Malaysia account for 85 percent of the world’s palm oil production, and the plunge in prices have hurt their economies. They will each invest $5 million in the formation of the new body which will be called Council of Palm Oil Producer Countries (CPOPC) and resemble the structure and functionality of the 55-year-old Organisation of Petroleum Exporting Countries, or OPEC.

“We must be able to chart the direction of the palm oil industry and, with similar objectives, the industry will continue to prosper the people and especially assist the smallholders,” Amar Douglas Uggah Embas, Malaysia’s plantation industries and commodities minister, told a press conference after the signing of the joint council which took place at the ASEAN summit in Kuala Lumpur and was witnessed by Malaysian Prime Minister Najib Razak and Indonesia’s President Joko Widodo.

Malaysia and Indonesia first announced the CPOPC in October with the aim of ensuring further industry cooperation, establishing a global framework for sustainable palm oil, stabilising prices and managing stock levels.

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