Traders in Malaysia are concerned about the build up of stocks in the domestic market, as production is expected to grow over the next few months. Deputy Minister in Primary Industries, Anifah Aman, believes however that the downtrend in prices is no cause for concern. The government of the world's largest producer of CPO has taken two remedial steps within the domestic market. Firstly, seven exporting companies were allowed to export 500 metric tonnes of CPO tax-free. Traders say this is not enough, but the government is simultaneously offering incentives through a loan scheme to smallholders and producers to undertake replanting programmes, thereby reducing their output of CPO.Research has also been conducted into the potential uses of CPO. The national oil company Petroliam Nasional Bhd are involved in an investigation into whether 500,000 tonnes could be taken from the glutted market and converted into diesel fuel.The government have also been active in promoting Malaysia's palm oil products, sending trade missions to South Korea, China and Japan, in a search for new market potential. The price of CPO has dropped to between US$252 and US$290 a tonne.