Indonesia's GAPKI sees lower 2024 palm oil exports, possible B40 mandate
06/03/2024 (The Star Online), Kuala Lumpur - Indonesia's 2024 palm oil exports are seen at 29.50 million metric tonnes, down from 30.25 million tonnes last year, the Indonesia Palm Oil Association (GAPKI) said at an industry conference on Wednesday (March 6).
Meanwhile, palm oil output in the world's biggest producer of the edible oil is expected to rise by 2.26% to 54.4 million tonnes, GAPKI official Fadhil Hasan said, while domestic consumption is seen higher due to demand for biodiesel feedstock.
Indonesia's end-2024 palm oil stock is estimated at 5.25 million tonnes.
"There is a possibility of the new incoming government increasing B35 to B40," Fadhil said, referring to Indonesia's mandatory bio-content mix that currently stands at 35% of biodiesel. This could take place in the second half this year, he said.
"One of the programmes by the candidate likely to be elected is intention to raise to B50, but that is maybe for after 2025," he added.
Pollsters have said that Defence Minister Prabowo Subianto is the likely winner of the Feb 14 general election. The election committee has until March 20 to verify votes.
Meanwhile, the impact of El Nino dry weather pattern last year has turned out to be insignificant on 2024 production as it hit mostly Java and southern regions of Sumatra, which are not palm oil producing centres, Fadhil said. - Reuters