Palm | Kelapa Sawit

KUALA LUMPUR, Oct 11 (Reuters) - Malaysia has approved a plan to cut crude palm oil (CPO) export taxes from 23 percent per tonne, a government official said on Thursday, as the world's No.2 producer tries to grab market share from top producer Indonesia.

Malaysia's cabinet will discuss the size of the cut in CPO export taxes on Friday, the commodities ministry official said. Commodities Minister Bernard Dompok has proposed for duties to be cut to 8-10 percent.

"There may or may not be a decision but the government is actively working on it. It will be a key focus of discussion for tomorrow," said the official, who declined to be named because he is not authorised to speak to the media.

The cut may boost Malaysia's crude palm oil exports and give short-term support to prices that have lost 22 percent so far this year as a slowdown in shipments has led to a rise in inventories.

Malaysia's palm oil stocks hit a record of nearly 2.5 million tonnes last month as output reached an all time high and export growth slowed considerably, piling pressure on the government to act to prop up prices.

Slower Malaysian exports were due mostly to competing Indonesian processors offering cheaper refined palm oil cargoes after Jakarta cut its own export taxes for processed grade last year to boost margins and lure investment.