1/7/2004 Bangkok Post - Strategic plans to develop the palm oil industryhave been drafted to increase the plantation area by at least 400,000 raia year over the next 25 years.

The expansion will support the government's plan to use palm oil as thecore raw material in producing biodiesel, an alternative fuel, accordingto Chakan Saengraksawongse, director-general of the AgricultureDepartment.

The Energy Ministry aims to produce 176 million litres of biodiesel overthe next two years and raise the output gradually to 722 million litres by2011.

But the department said that the local palm oil output remained small, atabout four million tonnes in 2002, with an average yield per rai of 2.43kilogramme, compared with 21 million tonnes with 3.2 kg/rai in Malaysia.

The palm oil production in Thailand this year was estimated at around 5.2million tonnes.

He said under the plans, the department would produce better palm oilseeds for planters. About one million hybrid seeds and 950,000 palmseedlings will be distributed at low prices.