Sri Lanka Carson unit sees palm oil prices staying firm

May 08, 2011 (LBO) – Palm oil prices are likely to remain firm owing to growing demand from emerging markets like India and China, shareholders of Shalimar (Malay), a subsidiary of the Carson Cumbebatch group, have been told. Shalimar’s net profit for the financial year ending March 31, 2011 shot up 218 percent to 153 million rupees from the yea before with sales more than doubling to 260 million rupees.

Annual earnings per share were 22.05 rupees against 6.94 rupees the previous year as the firm benefitted from higher sales owing to increased production and prices while costs were kept under control.

Shalimar (Malay) chairman Hari Selvanathan attributed the increased profit to “higher revenues stemming from higher average prices, increasing crop volumes and high dividend income.”

The company™s crop production benefited from increasing yields due to progressive maturity of the plantations, he told shareholders in the company’s annual report.

“Vegetable oils are expected to trade at a reasonably comfortable price range over the short to medium term supported by strong demand fundamentals,” Selvanathan said.

The group decided to restructure its palm oil units and mop up stakes of minority shareholder