Malaysia's palm oil production is expected to reach above 19 million tonnes

09-Oct-2024 02:33 PM

Kuala Lumpur. Despite the wrath of the El Niño weather cycle last year, there are indications of a great production of palm oil in Malaysia during the current year and by the end of the year, the total production is expected to increase to above 19 million tonnes, which will be the highest level since the year 2000.

Malaysia's Plantation and Commodities Minister says that during the eight months from January to August 2024, about 126 lakh tonnes of palm oil was produced in the country, which was 10.2 percent more than the same period last year.

During September to December 2024, an average of 17-18 lakh tonnes of palm oil is expected to be produced per month.

Industry and trade analysts have estimated the September production estimate to be about 2 percent less than the official production of 18.94 lakh tonnes.

If this trend continues, the total production of palm oil there can increase to around 200 lakh tonnes by December 2024.

According to the Plantation Minister, the increase in import duty on edible oils in India and the increase in domestic production will not have any effect on the export performance and benchmark futures price of Malaysian palm oil.

The reality is that the futures price of crude palm oil has increased to above 4000 ringgit per tonne. Its benchmark futures price for January 2025 delivery had reached 4226 ringgit per tonne the previous day.

It is worth noting that Malaysia is the second largest producer and exporter of palm oil in the world and most of the palm oil products from there are exported to India.