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Malaysia delays tax free crude palm oil export quotas

Published January 30, 2012 Updated January 30, 2012 05:02am

For plantation firms holding export quota licences, the delay has hampered their ability to supply their overseas refiners with cheap feedstock and meet existing export contracts for crude palm oil.

"The Malaysian government usually issues the quotas in the last week of December but until now, nothing has been given out," one of the sources with a local plantation firm with a licence for the quotas told Reuters on Monday.

"We had been asking since December and the lack of action is affecting our business. This is why Malaysia's exports are falling this month," added the source who could not be identified as he is not authorised to speak to the media.

Cargo surveyor Societe Generale de Surveillance reported close to a 20 percent decline in Jan. 1-25 Malaysia palm oil export from the same period a month ago. Crude shipments alone slumped 75 percent to 74,640 tonnes.

Copyright Reuters, 2012