INSUBCONTINENT EXCLUSIVE:
The palm oil industry faces a pivotal moment as prices are expected to rise significantly in 2025
40% palm oil content next year
The government aims to reduce reliance on imported fossil fuels.However, this decision may have far-reaching consequences for the global
Industry experts predict a 10-15% price increase in early 2025 as a result.Production constraints in major palm oil-producing countries
contribute to the price pressure
Ambitions and Global Supply Challenges
Labor shortages, particularly in Malaysia, further compound these issues.Palm Oil Industry Facing DisruptionsThe ongoing conflict in Ukraine
has disrupted fertilizer supplies, adding another layer of complexity
Potassium chloride, crucial for palm oil cultivation, has become scarce.This shortage may impact yields and drive up production costs across
Global demand for palm oil continues to grow despite these challenges.China has emerged as the largest importer of Indonesian palm oil
Its market share increased from 11% in 2013 to 14% in 2022
India and the European Union remain significant buyers, though their share has slightly declined.Various industry analysts have revised
their price forecasts upward for 2025
Others offer more conservative estimates but still anticipate substantial increases
The carbon footprint of palm oil production on peatlands remains a significant issue.These factors may influence future policy decisions and
The palm oil market stands at a crossroads
and potential policy shifts add uncertainty to the outlook
Stakeholders across the supply chain must navigate these complex dynamics in the coming years.
