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Tuesday, July 29, 2008

Crude palm oil futures down


Palm oil prices sky rocketed in Malaysia during March 2008.
It rose to 4000 Rm /T CPO.
On 17 March the FFB rate was 817RM/T.
In April it was rallying between3500 -3600RM/T CPO ,and 750-790 RM/T FFB.
The same trend prevailed in May and June.
As a natural phenomenon ,the manure cost surged, and the in estate expenses doubled.
In July the price ranges between 740 -608RM/T FFB,3300-3500RM/T Cpo.
Now plantations are in a fix.
The government last year imposed cess ,to bring down the profit and mainly to supplement the shortage of cooking oil.
This July 2008,the government introduced windfall tax.
As the prices are tumbling , the plantations will be put in tight corner.
Fertiliser and expenses will remain stagnant.
Bringing down the already escalated cost of manure and exalted hike in salary and wages are near impossibility.
The Malaysian government should take efforts to stabilise CPO prices.
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