KUALA LUMPUR Malaysia is to grant an extra $130 million worth of credits to five palm oil importing nations to try to push up prices, AFP quoted a minister as saying Tuesday.
Primary Industries Minister Lim Keng Yaik said the credits would be extended to Russia, Myanmar, Egypt, Bangladesh and North Korea.
With the new sum a total of $400 million in credits would have been granted, Bernama news agency quoted him as saying.
Lim said Russia would be the main beneficiary with $50 million to buy palm oil on credit.
Lim also said he would announce this month the list of companies given exemptions from the tax on crude palm oil exports.
He said fewer than 10 companies would be approved and they would have to export 500,000 tons within the next six months.
Lim said most companies would be from the eastern states of Sabah and Sarawak so as not to affect the capacity of refineries in peninsular Malaysia.
Last year Malaysia authorized four companies to export 400,000 tons of crude palm oil duty-free to reduce a stockpile that has pushed down prices.
Malaysia is the world's largest palm oil producer, accounting for about half of global output. Last year it produced 10.5 million tons of crude.
It taxes crude exports to encourage local firms to engage in refining and create higher-value products.
Palm oil prices hovered around 1,050 to 1,200 ringgit a ton in the first half of this year, down from 1,473 ringgit per ton last year.