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Malaysia limits staff in palm oil mills, refineries The Malaysian government has limited workforce capacity in palm oil mills and refineries to 60% in a bid to curb the spread of COVID-19, AgriCensus reported on 26 May. The move was part of a stricter implementation of the Movement of Order Control (MCO) on agribusinesses and was announced in a government statement on 26 May, taking immediate effect. Failure to comply would be subject to legal action taken against businesses, Agri-
Census reported the Plantation Industries and Commodities Minister Mohd Khairuddin Aman Razali as saying. He said other agri-commodity sectors – such as rubber, lumber, cocoa, pepper, kenaf and biodiesel – would also have to operate with a capacity of 60% of workers. “All industry players and employers must ensure that employees always follow the new standard operating procedures (SOP) that have been set. More frequent monitoring by employers on compliance
by employees should be implemented,” he said. The new ruling would be enforced in enclosed space such as mills and refineries while workers on oil palm plantations in open spaces could operate as normal, AgriCensus reported. Similar COVID-19 measures had been taken in the country during the first half of 2020, limiting the production of palm oil due to a lack of labour and leading to higher prices, according to AgriCensus.
A drop in India’s demand for vegetable oil is expected in the coming months due to the country’s second COVID-19 wave, AgriCensus reported on 7 May. Palm oil was expected to experience the sharpest decline as the country's hospitality sector – a key consumer of palm oil – was forced to close, AgriCensus wrote. However, demand for soft oils – mainly consumed by households – was expected to be less impacted. “Palm oil import demand is expected to slow down sharply in May and June as refiners stall buying due to lockdowns as the country tries to mitigate the devastating impact of COVID-19 infections,” Palm Oil Analytics owner and
IN BRIEF BRAZIL: Import duties on soyabeans, meal and oil have been suspended until the end of the year in a bid to halt inflation due to rising global commodities prices, Reuters reported the country’s agriculture ministry as saying on 19 April. The Ministry of Agriculture said rising international prices had put pressure on domestic prices, which had increased due to strong external demand and the continued devaluation of the real against the dollar. 6 OFI – JUNE 2021
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Indian imports to fall due to second COVID wave
India's second COVID wave is expected to hit vegetable oil demand
co-founder Sathia Varqa told AgriCensus. Preliminary import data for April recorded total edible oil imports at 1.1M tonnes, of which 756,000 tonnes was palm oil, according to Mumbai-based vegetable oil broker
Sunvin Group, with a decline in volumes expected over the next two months. Total inventories were reported at just below 1.69M tonnes on 1 April, according to data from the Solvent Manufacturers Association of India,
with that figure likely to shrink further in May due to falling imports. However, Indian palm oil imports were expected to rebound from July due to an anticipated increase in shipments from Malaysia, the report said. Meanwhile, there had been a sharp decline in sunflower oil imports due to tight supply from the Black Sea leading to rising prices, which in turn had caused buyers to switch to more affordable edible oils, AgriCensus wrote. Indian imports of Ukrainian sunflower oil had dropped by almost 34% in April – at 212,680 tonnes – compared to the previous month, according to Sunvin Group data, the report said.
Strikes put pressure on Argentine exports Oilseed and grain exports out of Argentina could be disrupted due to ongoing industrial action by workers demanding COVID-19 vaccines, AgriCensus reported. The country’s maritime and port federation FeMPINRA had launched a 24-hour strike on 20 May to demand vaccines for its workers, the report said. Grain receivers’ union Urgara had also announced its own 24-hour strike action, demanding COVID-19 vaccines for its workers. The unions had held meetings with government authorities but they had failed to reach a solution, a source told AgriCensus. Further action had been announced by 11 marine and logistics-based trade unions, with a 48-hour strike scheduled for 26 May. The ongoing industrial action had paralysed
grain shipments at ports in the Rosario hub and also in the Atlantic ports of Quequén and Bahía Blanca, the report said. Meanwhile, seven grain ships stranded in shallow water in the Port of Rosario were due to be towed free following the end of a strike by port workers, Reuters reported on 24 May. Captains of tugboats and other port workers had gone on strike to be classified as essential workers and qualify for the COVID-19 vaccine. Six of the seven stranded ships were loaded with soya meal, corn and other farm products but had been unable to leave once loaded due to shallow waters, the report added. Water levels on the Paraná River continued to decline due to dry weather, creating shipping challenges for Argentina, Reuters wrote. www.ofimagazine.com
11/06/2021 09:10:01
