Indonesia, Malaysia form OPEC-like palm oil council
KUALA LUMPUR, Malaysia (AP) — Indonesia and Malaysia, the world's top two palm oil producers, have inked an agreement to set up a council for palm oil producing countries in a bid to ensure price stability by managing production and stock in the global market.
Officials say the Jakarta-based council will be a body similar to that of OPEC for oil producers.
Indonesian Resources Minister Rizal Ramli said Saturday that the council will be a "game changer" for an industry under pressure from falling prices and unsustainable farming practices.
He said it will address impediments to trade to boost competitiveness in the world market, and promote green and sustainable farming. He said it will also aim to improve the livelihood of more than 4 million pam oil smallholders in Indonesia and some 500,000 in Malaysia.