Plantation associations appeal to govt on foreign worker, taxation, market access issues
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Palm oil associations shocked by sudden cess hike
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More leeway needed
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(Bloomberg) Palm oil production in Malaysia is being dealt a double blow from a persistent shortage of workers to harvest the crop and torrential rains that have triggered floods in key growing areas of the world’s No. 2 supplier.Relentless heavy rain and thunderstorms have led to flash floods in parts of Sabah, Sarawak, Johor, Pahang and Perak the biggest palm oil-producing states in the country. While palm trees are typically water-loving and resistant to wet weather, prolonged floods could prevent harvesting leading to overripe fruit and poor oil quality and disrupt transport of fruit to mills.Deepening output woes is Malaysia’s re-imposition of lockdowns from Jan. 13, and a state of emergency that may last until August, which complicates the recruitment of foreign labor that the palm industry is so desperate for. The production constraints may help shore up palm oil futures, which have retreated from a 10-year peak.“Certain states including large oil pa