PALMOILMAGAZINE, KARACHI – The palm oil industry in Indonesia is poised to confront intricate challenges that will have a substantial impact on both price and production in 2024. Dorab Mistri, the Director of Godrej International Ltd, highlighted key factors that are intricately linked to vegetable oil markets, particularly palm oil.
A primary worry revolves around the diminishing palm oil supply from Indonesia. This scarcity is expected to exert pressure on industries, giving rise to concerns about the stability of vegetable oil prices and supplies.
In addition to this, bioenergy policies, including initiatives such as biodiesel and sustainable aviation fuel (SAF) implemented in various countries, could emerge as significant determinants shaping market prices in the coming years. Dorab anticipates that uncertainties may intensify, particularly if geopolitical tensions escalate globally.
Also Read: World Geopolitics Benefits Palm Oil
Julian Conway McGill, analyst of Glenauk Economics told the new dynamic in the complexity. The lower production, biodiesel mandatory program, and unavailable areas as the results from palm oil moratorium policy in Indonesia, would be the elements to get new landscape.
The other factors to encourage decreasing palm oil production in Indonesia covered climate issue, such as, El Nino though it might influence less. But the decreasing production for the last few years would be a serious focus. In this context, McGill claimed the impact of the decreasing production would be more significant than certain environmental issues.
The sixth conference focused on geopolitics escalation in the globe. The uncertainty in Black Sea, the impacts of increasing warm in Red Sea are the additional factors to carefully get anticipated namely in logistic access to deliver supplies.
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In facing the challenges, palm oil industries in Indonesia faced claims to get innovative solutions. To escalate the production but being efficient, it would be important to maintain the industrial competition. It is important to maintain sustainability. The governments, stakeholders, and others should cooperate to formulate policy(ies) that support palm oil industries without scarifying environment sustainability.
In these contexts, synergy among the government, stakeholders, and other would be the successful one. Policy(ies) to support innovation and green technology would be the positive to answer the call to maintain natural sustainability. (T2)
