Malaysia to trade palm oil for rice to stabilise supply
Malaysia is prepared to offer palm oil in exchange for rice to any rice-exporting country as part of efforts to stabilise domestic supply.
By Agencies |
KUALA LUMPUR: Malaysia is prepared to offer palm oil in exchange for rice to any rice-exporting country as part of efforts to stabilise domestic supply, a Cabinet minister said.
"Currently Thailand is our main supplier of rice, but we are ready to offer palm oil to any exporting country that is ready to give us rice of suitable quality," Plantation Industries and Commodities Minister Peter Chin told Dow Jones Newswires in an interview late yesterday.
Chin said such barter deals could help Malaysia build up its rice stockpile. His comments are significant as the proposal can add a fresh dimension to global rice diplomacy.
Malaysia is the world's second-largest producer of palm oil after Indonesia, and imports nearly 27 per cent of its rice needs annually. It hopes to cut rice imports to 14 per cent by 2010.
Analysts said the proposal, if pursued at government levels, could lead to swaps with countries such as India.
India, one of the world's largest palm oil importers by volume, was the third-largest rice exporter until it imposed restrictions on overseas sales in October, contributing to a rise in global rice prices.
The country imports between 700,000 tons and 800,000 tons rice annually but purchases are likely to be higher this year due to efforts to build up the larger buffer stock.
"Currently Thailand is our main supplier of rice, but we are ready to offer palm oil to any exporting country that is ready to give us rice of suitable quality," Plantation Industries and Commodities Minister Peter Chin told Dow Jones Newswires in an interview late yesterday.
Chin said such barter deals could help Malaysia build up its rice stockpile. His comments are significant as the proposal can add a fresh dimension to global rice diplomacy.
Malaysia is the world's second-largest producer of palm oil after Indonesia, and imports nearly 27 per cent of its rice needs annually. It hopes to cut rice imports to 14 per cent by 2010.
Analysts said the proposal, if pursued at government levels, could lead to swaps with countries such as India.
India, one of the world's largest palm oil importers by volume, was the third-largest rice exporter until it imposed restrictions on overseas sales in October, contributing to a rise in global rice prices.
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Chin will be visiting India later this month to attend a palm oil conference. Malaysia has been actively scouting for rice from the international market to increase its buffer stocks to volumes equivalent to three months of requirements, compared with current levels that are sufficient only for 15 days.The country imports between 700,000 tons and 800,000 tons rice annually but purchases are likely to be higher this year due to efforts to build up the larger buffer stock.
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