25 percent fall in palm crop yield due to corona epidemic in Malaysia

 20 Jul 2020 ( IBTN Bureau )

Malaysia's palm oil business was affected for a few months due to stress from India, but now the corona epidemic has reduced palm crop yield by 25%. This decline will further increase in the coming weeks.

This is happening due to lack of labor. The Malaysian Palm Oil Association (MPOA) said on Monday that the government's decision has had a profound impact on palm oil production, preventing the reinstatement of new foreign workers.

The government has halted the resumption of new foreign workers until the month of December due to Corona. Experts say that this decision of the government may ruin Malaysia's palm oil industry.

Najeeb Wahab, CEO of MPOA, said in a conference, "Before Kovid 19, we had about 36 thousand less workers. Our production has fallen from 10% to 25%.

Malaysia is the second largest palm oil producing country in the world. But Malaysia's industry depends on the workers of Indonesia and Bangladesh. Malaysia palm crop plantations are 84% workers from Bangladesh and Indonesia. Thousands of workers have gone back and new jobs have been closed in their place.

Due to labor shortage, palm fruit may be delayed in harvesting and this will directly affect oil production. Palm oil production is rampant in September and the entire industry is struggling with labor shortage.

Najib said that plantation companies are actively recruiting local people to follow the policy of the government, but the local people do not want to engage in this work due to the mess.

In such a situation, it is not easy to bridge the labor shortage. Najib said that if the needs of the local people are not met, then the government needs help.

Deputy Plantation Industries and Products Minister Willie Mongin has said that the ministry is working to address the problem.

He said that Malaysia is preparing to complain to the World Trade Organization because the European Union has banned the use of palm oil as biofuel.


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