Outstanding stock of palm oil in Indonesia and Malaysia is expected to decrease

19-Jul-2024 04:00 PM

New Delhi. Data presented at the Global Round Table Conference organized by the Indian Vegetable Oil Producers Association (IVAPA) shows that the outstanding stock of palm oil in Indonesia and Malaysia will decrease somewhat at the end of 2024 as compared to the year 2023. 

According to the data received, the total production of palm oil in Indonesia may fall from 48 lakh tonnes in 2023 to 480 lakh tonnes in 2024. Similarly, the total export of palm oil products is also likely to decrease from 270 lakh tonnes to 250 lakh tonnes, but domestic production is expected to increase from 230 lakh tonnes to 239 lakh tonnes because palm oil is being used heavily in biodiesel production there.

After the demand and supply equation is met, the outstanding surplus stock of palm oil in Indonesia is expected to decrease from 40 lakh tonnes last year to 33 lakh tonnes in 2024, which will not put much pressure on the industry. 

As far as Malaysia is concerned, the production of crude palm oil there is estimated to increase by 8 lakh tonnes from 185.50 lakh tonnes in 2023 to 193.50 lakh tonnes in 2024 and the export of palm oil products is also expected to jump by 12 lakh tonnes from 151.30 lakh tonnes to 163.30 lakh tonnes during this period.

As a result, the outstanding surplus stock of palm oil there is expected to decrease from 22.90 lakh tonnes to 20 lakh tonnes at the end of the year.

It is noteworthy that Indonesia is at the first position and Malaysia is at the second position in the production and export of palm oil globally.

Huge quantities of crude palm oil and RBD palmolein are imported into India from both these countries.