PUTRAJAYA: The B20 biodiesel programme for the transport sector is expected to be launched in phases next year. It is expected to give a fillip to the crude palm oil (CPO) price, which is projected to reach RM3,000 per tonne.
Primary Industries Minister Teresa Kok Suh Sim said the programme would start in Langkawi, followed by Labuan, Sarawak, Sabah and subsequently in Peninsular Malaysia.
“A preliminary study and engineering design for the upgrading of the blending depot has also been approved with an allocation of RM35 million.
“This will involve 35 depots and are expected to be ready in the first quarter of next year,” she told reporters after the primary industries ministry gathering here today.
Kok said the launching ceremony for the programme would be officiated by Prime Minister Dr Mahathir Mohamad on Feb 20 next year.
She said the CPO price, which is now approaching RM2,800 per tonne, was expected to continue rising next year based on the positive trend.
The price was around RM1,700 per tonne in 2018.
The increase in the CPO price will not only benefit the country’s economy but also the industry, especially smallholders, Kok said.
“The Christmas and Chinese New Year (celebrations) would see many countries importing palm oil from us and the implementation of the B20 programme would boost demand. If stocks are low, prices would go up,” she said.
Meanwhile, Kok said she would make a visit to Europe early next year to meet the commissioner and new parliament members of the European Union (EU) to present Malaysia’s efforts and success in promoting a sustainable oil palm industry.
“We want to tell them what Malaysia has done over the last two years.
“Europe wants sustainable palm oil and we are already doing it, even the smallholders. The government will help them get the Malaysian Sustainable Palm Oil (MSPO) certification.
“Our oil palm industry players replant forest trees and contribute to forest conservation,” she said.
Highlighting one of Malaysia’s efforts, Kok said the additional RM1 cess per tonne of palm oil produced would be collected and parked in a fund for green initiatives, which will be utilised for wildlife conservation purposes and green initiatives, especially replanting of forest trees.
She hoped the EU will accept and recognise Malaysia’s green agenda and MSPO, thus relaxing import curbs on the commodity and stop throwing accusations against palm oil.
On the MSPO certification, Kok said the target of 100% by Dec 31 was not achieved due to the challenge posed by the smallholders. However, they are now more aware of the need for the certification and have shown more interest following promotion by the media.
She said industry players’ awareness on the certification had increased, with 62.14% of the 5.85 million hectares of areas planted with oil palm in Malaysia achieving MSPO certification as at Dec 19 compared with only 17% when she began heading the ministry.
Kok said she was confident that the target of 70% of the oil palm-planted areas in Malaysia to be MSPO-certified could be achieved by February 2020. - FMT
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