Malaysian Palm Oil Association Says Production May Go Down By 25%

Kuala Lumpur : Malaysian Palm Oil Association (MPOA) said Palm Oil production is likely to go down significantly as labour shortage caused decline of up to 25 per cent in the palm oil yield.

“Pre-COVID, we were already short of 36,000 workers. This (shortage) has already resulted in us not realising our potential production by 10 percent to 25 percent,” MPOA Chief Executive Officer Nageeb Wahab said in a conference.

He said the government’s decision to freeze the recruitment of new foreign workers until December could lead to the “demise” of the industry.

Impact on Paksitan:

According to MPOA, Pakistan was the top buyer during the period of January 2020 to May 2020. Pakistan imported 444 MT palm oil from Malaysia. Pakistan Bureauf of Statistic stated that Pakistan imported palm oil worth PKR 22.55 billion in the month of June. Shortfall in the production will affect many food and other products in Pakistan. It will have direct impact on FMGCs and Oil and Ghee manufacturers.

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