Palm oil price crash spells misery for SEAsian farmers

KUALA LUMPUR (AFP)


Palm oil prices have plummeted from a March high of 4,486 ringgit (1,248 dollars) per tonne to less than 1,500 ringgit, due to the financial crisis and the falling price of crude oil — which reduces demand from the biodiesel industry.

Malaysia’s deputy commodities minister Kohilan Pillay said today’s prices were close to the production costs of most smallholders, squeezing their earnings and pushing them to the brink of bankruptcy.

Oil mills are causing further hardship by flouting laws that require them to buy fruits from smallholders, whatever the going rate, he said.

AFP