News Capsule: Palm oil prices likely to rise on Indonesia’s biofuel push
12-Nov-2025 10:25 AM
News Capsule: Palm oil prices likely to rise on Indonesia’s biofuel push
★ Indonesia, the world’s largest palm oil producer, plans to raise its biodiesel blending ratio from 40% (B40) to 50% (B50), which will reduce the amount of palm oil available for exports.
★ Currently, palm oil prices stand at RM 4,145 per tonne, but if the B50 programme is implemented, they could climb to RM 5,000 per tonne.
★ This situation may force major importers like India and China to source palm oil from other countries.
★ With the implementation of B50, Indonesia’s palm oil exports could fall to 26 million tonnes in 2026, compared with an estimated 31 million tonnes in 2025.
★ Additionally, China-US agricultural trade deals, US biofuel policies, and stock levels of other edible oils such as sunflower and canola will also influence market trends.
★ Considering all these factors, I-Grain India expects palm oil prices to strengthen in the coming months.