Kolkata: Indonesian exports of palm oil to India is likely to go up by at least 10% in the current marketing year that started in October on the back of higher demand in the subcontinent and favourable weather in Indonesia, leading to a spurt in production.
The production of crude palm oil in the country is expected to go up by at least 7.5% in 2010.
Andi M Ghalib, ambassador of the Republic of Indonesia in India, said, “production this year is likely to be good as the climate is favourable”.
Enhanced demand for palm crude palm oil in India increased imports from Indonesia which is expected to cross 8.65 mt in 2009, significantly more than 4.8 mt in 2008.
Crushers in India have been facing high oilseed price in the domestic market. Then again, high price of pulses have prompted consumers to switch to oilseeds like groundnut and soyabean.
According to reports, India has already called bids to import 30,000 tonne of palm oil.
According to Otto Riadi, counsellor to the Indonesian embassy in India, production of crude palm oil in Indonesia is likely to go up by 7.5% in 2010. Although there have been concerns that the developing El Nino may impact production of crude palm oil in Indonesia, insiders are of the view that the country can expect an increase of at least 1.5 mt this year.
Meanwhile, experts say Malayasia will produce less crude palm oil this year as a new low cycle for palm trees will start this year after the high cycle coupled with replantation programme in the country and the impact of El Nino.
Global edible oils analyst Dorab Mistry recently said that with a decline in production in Malaysia, palm oil prices are expected to rise to around 2,800 to 3,000 ringgits by March 2010.
Indonesia is also expecting prices of crude palm oil to remain “competitive” with the Malayasian market as the production of crude palm oil in Indonesia is likely to go up by 7.5% this year.
Source : Financial Express