03/08/2010 (The Financial Express), Mumbai - US agribusiness group Bunge Ltd is actively scouting for palm plantations in Indonesia and Malaysia to cater to Asian demand led by India and China, the world’s biggest importers of vegetable oils, the head of its Indian unit said.

“We must be in the palm plantation otherwise we will miss palm growth story,” Adhiraj Sarin, managing director of Bunge India said in an interview on Monday.

But, the world’s biggest soyabean crusher has not earmarked the size of the land or investments for this project yet, Sarin said.

“We want to be pretty big in palm oil. The problem is availability of greenfield land as well as existing players who would be willing to partner. So, the idea is to start with whatever land is available and expand as and when,” he added.

Malaysian crude palm oil jumped to a three-month high on Monday, supported by concerns of slowing crude palm oil output and higher soyabean prices.

“Rapid economic growth in China and India has boosted edible oil demand, largely met from imports of palm oil. In Europe, the rapeseed harvest is expected to shrink this year, boosting competing oils,” Thomas Mielke, head of global oilseed research group Oil World said on Monday.

Bunge, based in White Plains, New York, is among the world’s largest agricultural processors. It has become one of the top sugar and ethanol producers in South America with several recent acquisitions, but has significantly scaled back its fertiliser business there.

“Bunge is planning to set up units on India’s eastern and western coast to refine palm oil, but it will do so only after finalising plantation deals in Indonesia or Malaysia,” Sarin said. “The palm plantation deals will be funded by the parent company which had sold off a fertiliser unit last year,” he said.

India, the world’s top vegetable oil importer, buys mainly palm oil from Indonesia and Malaysia and a small quantity of soyaoil from Argentina and Brazil.

Besides oil, Bunge wants to expand its sugar business in India, the world’s biggest consumer of the sweetener, either through joint venture or acquisitions. “We are looking for a good joint venture in sugar in India. We are looking for the right location and right partner in Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu,” Sarin said.