(KPB PTPN) : Indonesia, the world's second largest palm oil producer, is likely to export about two million tonnes of the commodity to india this year, 11 per cent more than the 1.8 million tonne it shipped last year.
“We are expecting that exports to India this year will be about two million tonne compared with 1.8 million tonne last year,” Derom Bangun, chairman of Indonesian Palm Oil Producers Association, said on the sidelines of the India-Indonesia Joint Business Council meeting on Monday.
Bangun, who is also chairman of the India Committee of the Indonesia Chamber of Commerce, said that they expect India's domestic palm oil production to be down this year on account of weather-related problems.
Production in Indonesia, on the other hand, is likely to rise over 11 per cent this year to 13.6 million tonne against 12.2 million tonne, he said, adding this is largely owing to increased area of production and better productivity.
India is the world's third largest vegetable oil importer and also the fourth biggest consumer of palm oil, which constitute about 80 per cent of the country's edible oil imports.
Local oilseed production is likely to be affected this year owing to delayed monsoon season in Madhya Pradesh and floods in Maharashtra, the two prominent soyabean-growing states.
The country imports nearly 80 per cent of its palm oil from Malaysia and the rest from Indonesia.
Imports from Indonesia are also expected to rise after Malaysia recently removed its currency Ringgit's peg to the US dollar, making its palm oil more expensive in dollar terms compared with Indonesian exports. (mes)
Source : http://www.business-standard.com
Press Trust Of India / New Delhi August 10, 2005
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