Any crude palm oil with FFA less than 5% would be entitled to an agreed premium per percentage reduction in FFA. On the other hand, every percentage FFA over the maximum contractual value would incur an agreed to penalty. With improvements in the industry over the years, the trading specifications for crude palm oil under the domestic sales contract was revised in the 1990s to 5%max for FFA and 0.25%max for M&I. For this, mills tend to aim for an FFA level of 3.5% ex-mill gate. If the initial FFA and moisture levels in crude palm oil are low, then the oil quality in terms of these two parameters are quite stable as can be seen in Table