14/5/06 JAKARTA, (Asia Pulse) - The price of crude palm oil (CPO) is predicted to rise this year with expected increase in demands from China and India and growing requirement to be processed in alternative fuel.

Commercial Director of PT Bakrie Sumatra Plantation Bambang Aria Wisena said the price of CPO is estimated to the level of 1,700 Malaysian ringgit (US$460) per ton, up from 1,474 ringgit at present. 

Ben Santoso, a commodity analyst from PT Namalatu Cakrawala said the price of CPO will rise because of expected decline in supply from Malaysia, the word's largest producer.

China and India are the world largest consumers of CPO and expansion of the two world's fastest growing economies will increase demand for CPO in the world market, Bambang predicted.

The U.S. agriculture ministry predicted that China will need to import 4.75 million tons of palm oil this year or up 9 per cent from last year and India is expected to see a 4 per cent rise in its imports to 3.5 million tons.

(ANTARA)