The price of crude palm oil, which has experienced extreme volatility over the past six months, is predicted to increase by 8 to 10 percent as demand for essential edible oil rises internationally. Kadir is a member of the Malaysian delegation that will be present at the two-day Global Roundtable on the Vegetable Oil and Oilseed Sector hosted by the Indian Vegetable Oil Processors’ Association (IVPA).
He claimed that despite a labor deficit, Malaysia expects production to increase by 0.8%. We want to generate a little bit more this year. According to him, production will increase to 18.5 million tonnes (mt) from 18.12 mt last year for the period of January through December. According to Sudhakar Desai, President of IVPA, the pricing range for crude palm in the upcoming three months will be between $950 and $1,200 a tonne. There isn’t much room for palm oil prices to go down, he said.
Due to geopolitical factors this year, such as the conflict between Ukraine and Russia and Indonesia’s decision to first ban the export of crude palm oil and then reverse it, crude palm prices—which are currently averaging around $1,000 per tonne—saw a significant variation. “From $2,000 per tonne in June, it dropped by 50% and below. It even reached $800. However, since the price was reduced, demand for consumption has increased, according to Desai.
The MPOB Director General suggested that India should concentrate on yields in order to boost domestic output. “India grows oil crops on roughly 26 million hectares and exports 10 million tonnes of product. It is four times larger. hectares of oil plantations, yielding 10 million tonnes. Although there are four times as many oil crops in this area as there are in Malaysia, just half as much oil is produced, he claimed. Increasing yields in the current oil production region should be India’s main concern, he advised.