The Sarawak Oil Palm Planter Owners’ Association (SOPPOA) has urged the Federal and Sarawak state governments to look into whether Singapore-based Wilmar has committed an anti-competitive behaviour, following its decision to discontinue buying crude palm oil from some of Sarawak’s planters, The Star has reported.
SOPPOA has filed a memorandum, sent to several government agencies, including the Plantation Industries, Commodities Ministry and the Sarawak Land Development Ministry, urging them to investigate if the palm oil company infringed on Competition Act 2010 by its actions.
Wilmar is said to be Sarawak’s biggest buyer of crude palm oil, procuring more than 50 per cent of the 3.3 million tonnes of CPO produced in Sarawak annually, the report said. But Wilmar’s new policy would not affect planters that have committed to abstain from developments in forest and peat areas after December 31, 2015.
In a separate report, analysts attribute the fall in today’s palm oil markets as a ‘knee-jerk reaction’ from the decision made by Wilmar. Ta Ann Holdings Bhd and Sarawak Oil Palms Bhd dropped by 15 sen or 3.6 per cent and 19 sen or 3 per cent respectively, while Jaya Tiasa Bhd and TH Plantations also shed two sen each off their share price.
