Malaysia has delayed taking a decision on a proposal to cut crude palm oil export taxes to 8-10 percent from 23 percent as the cabinet needs more time to study the plan, a government official said today.

Palm oil markets have been waiting for Malaysia to come up with a strategy to counter top producer Indonesia’s move last year to cut export taxes of refined palm oil and boost margins for its processors.

“On the crude palm oil tax duty...it will be decided soon,” the official said, declining to be named as he was not authorised to talk to the media.

“In addition, the commodities minister will be discussing with the Indonesian Agriculture Minister on Monday to strengthen bilateral cooperation,” the official added.

A reduction in Malaysia’s crude palm oil export tax is likely to boost exports and give short-term support to benchmark prices that have lost 23 percent so far this year on rising stocks.

- Reuters