Malaysia keeps CPO export duty flat in April

Malaysia will keep its export duty on crude palm oil (CPO) unchanged at the top rate of 8pc in April for the 28th consecutive month, according to the Malaysian palm oil board.

The country increased the CPO reference price it uses to calculate duties to 4,031.45 ringgit/t ($912/t) for April, up from 3,710.35 ringgit/t in March. CPO exports will only incur a lower duty if the reference price drops below 3,450 ringgit, which has not happened since Malaysia reinstated the export tax in January 2021.

Average local CPO prices rose during March compared with February, spurring the calculated reference price to rise in April from March. Higher Malaysian prices were supported by low stocks because of a seasonal downturn in production, coupled with export curbs from rival palm oil producer Indonesia.

By Lauren Moffitt