Palm Oil Consumption May Decline in India: Asia Palm Oil Alliance Head

28-Jan-2025 09:10 AM

Palm Oil Consumption May Decline in India: Asia Palm Oil Alliance Head

★ Shift in Consumption Patterns: Soya and sunflower oil prices are now lower than palm oil, which could alter consumption dynamics in the market.

★ Impact of Indonesia’s Policy Changes: Frequent regulatory changes in Indonesia have caused instability in palm oil markets, affecting global trade.

★ Malaysia’s Role During COVID: Malaysia restricted palm oil exports during COVID-19, later increasing export levies and boosting biodiesel usage.

★ Increased Trade with Indonesia: As a result, India’s trade with Indonesia has grown significantly.

★ Global Factors to Watch: The U.S. president’s mandate on ethanol blending and biodiesel usage will play a crucial role in shaping global palm oil demand.

★ These factors suggest that palm oil consumption in India could decline, with market conditions heavily influenced by global policy decisions and shifting price dynamics.