Published September 3, 2009

Rains improving in key palm oil states

	Email this article
	Print article
	Feedback

(KUALA LUMPUR) Rains have weakened in key oil palm growing regions in Malaysia, due to El Nino, although recovery may be on the cards from September onwards, the head of the country's meteorology department said on Tuesday.

Triggered by an abnormal warming of the east Pacific Ocean, El Nino sapped rains in Sabah and Sarawak states, in East Malaysia, by 30-40 per cent as well as in Johor, in mainland Malaysia, by 50 per cent in August.

The three states jointly account for roughly 70 per cent of production in Malaysia, the world's No2 supplier of the vegetable oil.

Malaysia's Meteorology Service director-general Yap Kok Seng said there will be a recovery this month with mainland Malaysia getting normal rainfall while Sarawak gets 20 per cent lower rainfall and Sabah 10 per cent less.

'Beyond September till the end of the year, in the best scenario with a weak to moderate El Nino . . . Sarawak and Sabah are expected to receive up to 10 per cent below the monthly average rainfall,' he said in an interview.

Traders and plantation owners said better rains from September onwards could improve palm oil yields and bring forward the uptick in production to October from the end of the year.

'The impact of drier weather in August has done its damage to yields in Sabah but September will see a recovery. October will be the peak production month overall,' said Velayuthan Tan, chief executive of Sabah-based IJM Plantations .

The improvement in rains might be due to El Nino aiding the north-east monsoon winds that bring more rainfall across Asia, analysts and scientists have said. 'For the months of November to December, Malaysia is under the northeast monsoon where heavy rain usually occurs in the east coast of peninsular Malaysia, Sabah and Sarawak,' Mr Yap said. 'A 10-20 per cent below average rainfall (during this time) is considered a mild impact.' - Reuters