Working group formed by Philippines, Malaysia, and Indonesia to tackle palm oil dumping

Philippine agriculture secretary Emmanuel Pinol said in a Facebook post the trio have agreed to form a tripartite technical working team to address the issue.

Palm oil plantation Source: Bloomberg

The Philippines will be forming a ‘technical working group’ with Malaysia and Indonesia to deal with the concerns over alleged smuggling and dumping of palm oil in its country, a situation which caused the prices of coconut oil in the country to sink and hurt local farmers.

The announcement was made by the Philippine agriculture secretary Emmanuel Pinol in a Facebook post, saying that the trio have agreed to form a tripartite technical working team to address the issue.

The agreement was reached yesterday following a call made with the Malaysian and Indonesian government representatives, Mr Pinol said. Last week, the country had made a temporary ban on palm oil imports from the world’s two largest producers.

Importation data gathered from the Philippine Department of Agriculture revealed that the export of palm oil to the Philippines from both Indonesia and Malaysia have increased by 100% over the last three years, shared Mr Pinol.

Because palm oil is cheaper than coconut oil, the increase in the export of palm oil was attributed as a reason behind the collapse of coconut prices, he said.

Recommendations to protect the local coconut and palm oil industry

Through the working group, the countries will draft recommendations on the rationalization of palm oil exports to the Philippines.

Mr Pinol recommended to keep palm oil exports by Malaysia and Indonesia at levels which would not hurt the Philippine coconut and local palm oil industry. He called for the two countries to check on the reports of the smuggling of crude and refined palm oil into the Philippines.

He also suggested for the opening up of the Malaysian and Indonesian markets for coconut products, so as to correct the trade imbalance.

Indonesia’s trade ministry official Pradnyawati Pambagyo confirmed the meeting on Thursday with Reuters, saying that the tripartite group will ‘recalculate the Philippines' import needs to avoid oversupply’ and discuss issues related to the palm supply chain.

Read more on Malaysian palm oil price sink to 1-week low on high inventories.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

See opportunity on a commodity?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform, when it matters

See opportunity on a commodity?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.