MARKET DEVELOPMENT
Lower Palm Output Causes Hiccup in Biodiesel B7 Production
Lower Palm Output Causes Hiccup in Biodiesel B7 Production
09/01/2014 (National News Bureau of Thailand) - The Energy Ministry’s planned production of biodiesel B7 has been faced with delay caused by a decrease in oil palm output. Biodiesel B4 will instead be put on the market for the time being to reduce the use of crude palm oil.
After chairing a meeting of the oil palm subcommittee, Deputy Prime Minister and Commerce Minister Niwatthamrong Boonsongpaisan said a resolution was made to ask the Energy Ministry to slow down its production of biodiesel B7 due to a drop in supply of palm fruits. He reported that the supply late last year plunged to 800,000-900,000 tons a month from the usual 1 million tons.
The meeting suggested that biodiesel B4 be produced as a substitute for B7 during this period as the move would help conserve the amount of crude palm oil in stock by another 30,000 tons each month. Mr Niwatthamrong added that it would also avert impacts on the stock for household consumption and prevent prices of bottled palm oil from rising.
The minister revealed that the current stock of palm oil stands at 210,000 tons, which is still sufficient. He also expressed hopes that the palm fruit supply would return to the normal level in March, the beginning of the harvest season.
After chairing a meeting of the oil palm subcommittee, Deputy Prime Minister and Commerce Minister Niwatthamrong Boonsongpaisan said a resolution was made to ask the Energy Ministry to slow down its production of biodiesel B7 due to a drop in supply of palm fruits. He reported that the supply late last year plunged to 800,000-900,000 tons a month from the usual 1 million tons.
The meeting suggested that biodiesel B4 be produced as a substitute for B7 during this period as the move would help conserve the amount of crude palm oil in stock by another 30,000 tons each month. Mr Niwatthamrong added that it would also avert impacts on the stock for household consumption and prevent prices of bottled palm oil from rising.
The minister revealed that the current stock of palm oil stands at 210,000 tons, which is still sufficient. He also expressed hopes that the palm fruit supply would return to the normal level in March, the beginning of the harvest season.