Two giant palm oil producers – Indonesia and Malaysia– will set up the Council of Palm Oil Producing Countries (CPOPC) in a bid to stabilise prices and stimulate development of the sector.

Indonesian Coordinating Minister for Maritime Affairs Rizal Ramli said the CPOPC, expected to debut late October, will coordinate production and manage stocks to keep palm oil prices stable.

He noted that Indonesia and Malaysia in combination are controlling 85 percent of the world palm oil market, so their cooperation will contribute greatly to maintaining prices, adding that other nations will be invited to join their efforts.

The council will also work to harmonise production specifications to enhance the product competitiveness, according to the minister.

Meanwhile, the Malaysian side said it expects the council will promote sustainable farming practices through a specialised research committee.

The two countries also shared the idea to encourage private investors to build a green economic zone for producing added value palm oil.

(Source:VNA)