PALMOILMAGAZINE, INDIA – Dorab Mistry, Director of Godrej International, shared new projections for palm oil production and pricing for 2024 to 2025. He stated that while palm oil production in Indonesia saw a decline in 2023, improved climate conditions in 2024 suggest that production will stabilize. In Malaysia, palm oil production is expected to exceed previous forecasts, potentially reaching 19.7 million metric tons.
Mistry noted that Indonesia’s palm oil production may improve in 2024 compared to 2023, though any decrease would be marginal. In Malaysia, production could be even higher than initially anticipated, with estimates reaching 19.7 million metric tons.
Regarding Indonesia’s plan to increase its biodiesel blend from B30 to B40, Mistry pointed out that the transition would take time, similar to the shift from B30 to B35, which took about seven months. He also mentioned that the months leading up to November 2024 will see higher palm oil production, contributing to an increase in global supplies.
Also Read: Insights into April 2024: Palm Oil Price Trends and Market Dynamics
Speaking at the Globoil India 2024 event on Friday (September 20, 2024), Mistry also addressed India’s new policy to raise import duties on palm cooking oil, which he predicted would have a short-term bearish impact on global palm oil prices and slightly limit palm oil consumption in India.
He also warned that oleochemical industries in India that covered fatty acid, soap, glycerin production would get the negative impacts, unless the Government of India immediately increased import duties for the related products.
Biodiesel production in the country could be stopped operating if the price that (vegetable) oil companies did not get increase. This could deliver impacts for palm oil imports in India in this very short. But after high peak production season is over, that could be in December 2024, palm oil price would be recovering in the first quarter of 2025 globally. (P2)
