70% to 80% of Malaysian oil palm smallholders ready for EU rules, says Johari

 

Plantation and commodities minister Johari Ghani said Malaysia’s low palm oil stocks are to be expected during Ramadan.

KUALA LUMPUR: 

About 70% to 80% of Malaysian oil palm smallholders are ready to comply with the European Union Deforestation Regulations (EUDR), says plantation and commodities minister Johari Ghani.

He told reporters here this evening the government is working to help smallholders in this matter.

“Malaysia is the world’s second-largest producer of palm oil. We definitely cannot avoid this. We have to comply,” he said.

Johari believes large private plantation companies, which make up about 73% of the total with 4.2 million ha, should have no issue complying with the EUDR, seeing that they continue to supply European countries.

“It is quite easy for them. They already comply with many international certifications, including the Roundtable on Sustainable Palm Oil and so on,” he said.

He was taking part in a Ramadan programme organised by Padiberas Nasional Bhd (Bernas) at the Hiliran Ampang PPR flats, where the company handed out food boxes to more than 1,000 residents.

The EUDR was initially scheduled to be implemented on Dec 30, 2024, but it has been delayed to Dec 30 this year for large operators and traders. Micro and small companies will have to comply with the rules by June 30, 2026.

On Malaysia’s low palm oil stocks, Johari said this was to be expected whenever Ramadan came around.

“Our palm oil requirements increase. That figure is quite normal for us. Our stocks will accumulate after this (festive season).

“We still have about 1.5 million tonnes of palm oil,” he said.

On Monday, the Malaysian Palm Oil Board said the country’s palm oil stocks had fallen for a fifth consecutive month in February to a 22-month low due to lower production, outpacing the decline in exports. - FMT