Deputy plantation industries and commodities minister Wee Jeck Seng said the halt in operations, which led to the millers not buying fresh fruit bunches (FFB), would affect existing stocks and have a negative impact on smallholders.

“We have received complaints from planters that millers are not buying (FFB). This should not have happened because FFBs have a shelf life, they do not last long, and the income of smallholders will be affected,” he said after launching the Transfer of Technology Webinar and Exhibition (TOT) 2022 here.

Wee said to address the situation, the Malaysian Palm Oil Board (MPOB) will be meeting with the millers.

“We have discussed the matter with MPOB and they will take action to call or refer to all manufacturers for advice.

“The millers should be (more) responsible irrespective of whether (crude palm oil) prices are high or low because every business carries risks,” he said.

The price of Malaysian crude palm oil saw its biggest one-month decline in more than 13 years in June, tumbling 22% to RM4,922 on Monday from a high of RM6,632.

MPOB director-general Ahmad Parveez Ghulam Kadir said the situation involved independent palm oil millers in Peninsular Malaysia, especially those in the northern and southern regions.

According to him, if the issue is prolonged, MPOB will take legal action against those involved and will also contact integrated palm oil producers to buy FFB to reduce the impact on the affected oil palm growers.

“We hope to resolve this problem within this week. We only just received the information yesterday and we will draft an action plan, and if necessary, we will issue a letter to all millers to take the appropriate action immediately,” he said.