Malaysia will give a rise to palm oil exports to China by 500,000 tonnes a year as it deals with immense pressure from new European Union hindrances aiming at deforestation, a senior minister revealed AFP on Monday. The trading bloc brought fresh rules this year that hinder goods from land that has been deforested. It is a step aimed at throwing its muscle into the fight in opposition to climate transformation and environmental destruction.
Palm oil is blamed by environmentalists for fuelling the destruction of rainforests in Malaysia and Indonesia, which together bring 85 per cent of global output. But the EU rules and regulations have been very much in discussion and arguments in producer nations, with both Malaysia and Indonesia showing to be against the move. Malaysia’s Plantation and Commodities Minister Fadillah Yusof told AFP that his nation is currently increasing exports to China, a prominent importer of the commodity.
The rise is the consequence of a deal between Malaysian-headquarted palm oil product firm Sime Darby Oils International and Chinese state-owned Guangxi Beibu Gulf International Port Group. It will “for sure” be supportive to Malaysia counter European curbs, he said passionately. “Chinese importers are purchasing high value-added downstream palm products getting launched from Malaysia,” he added. The eatable oil is utilised in foods such as cakes, chocolate and margarine, also in cosmetics, soap and shampoo.